These contests are a fast way for them to get dozens of submissions with no obligation on the publisher’s part. They don’t need to deal with writers’ agents and get into negotiations. And they get dozens and dozens of potential clients hooked on the hope of publication. Hope is what they are selling.
If they publish, will the
Does the package include editing? How much input will they allow you?
How many copies of the book does this price include? How soon would they publish? Will they put it up on Amazon or only agree to sell through their own website? That limits your coverage.
Do they do the cover design? Is it extra money? Do you retain any rights? Can you e-publish if you want to, or will you have to buy your rights back? I know at least one author who had to get a new cover design after securing rights to the manuscript again.
The plus side: They guarantee publication.
The down side: Check the small print and be sure this is a good move for YOU. They refuse to lose money, so the risks are all yours.