Linen Press is trying to get cute about [NB: broken link] their decision to charge a $5 submission fee to authors. [Edited to add this blog post has now been deleted]
"...reading submissions is a hugely time-consuming process and takes up perhaps a quarter of my work time ... [blah blah blah] ... "A charge of £5 seems fair enough."
BZZZZZT! Wrong. If you can't make enough money to pay for your time and efforts from selecting, developing and selling books, well... Publishing: you ain't doing it right.
You are the one that decided on the brilliant business strategy of running at a loss. Why the hell should authors be the ones to--quite literally--pay for it?