I take you aren't quite understanding the point or concept of a non-profit making organisation.
Profit is made, but it is reinvested, so that the books show 0 profit.
It is an interesting model and so far seems to be working. LE is a business only in the way that it has to be organised to make sure the books balance and that there is control over what is happening.
The main problems in the flying world are that clubs are usually rife with ego's and in fighting and flying schools are walking a financial tightrope as people try to make a living out of something that is just too tight.
The model that LE uses is to try and blend the best bits of both systems and give people what they want.
You can fly cheaply if you want, by using some of the different packages that are available. Now these aren't your standard pay upfront things, but things like pay a higher membership fee and get the aircraft for lower rates. So, if you do enough flying, then you save a whole load. With a couple of the packages if you do more than a certain number of hours, it works out that you are actually flying at under cost price. However the more hours the club does, then the cheaper the hourly rate gets for the club.
It's a win win thing. You can get cheaper flying, but it isn't such a risk for the club or the individual.
What you are also forgetting is the difference between price and value for money. Just because something is cheap doesn't make it better, sometimes paying more is worth it.
If that wasn't the case why do people buy BMW's instead of Hyundai's, after all, they both have 4 wheels and an engine and get you from A to B.
LE has never competed on price and yet it still survives and is far healthier than the competition. Funny that. It shows that the bottom line is less important than the whole experience.
I know I'd rather pay £100/hr for comfortable, well equipped aircraft, than £90/hr for a manky old thing that I'm embarrassed to take my family up in.