Actually, if there's a Lulu account available, I may see if Hat can order directly...Or order from you guys.
The minimum gross margin on something like this should be about .4 over the cost of publishing. Split that margin with hat 50/50 (with him buying them up front), and I think he'd fall all over himself to get involved in this.
I'll talk with him.
Incidentally, gross margin is calculated as
cost of publishing/1-gross margin.
So if the book cost you $10 to print, the margin would be 10/1-.4 for $16.66, meaning you and he would each get $3.33/book.
Shipping should be considered part of the cost of publishing, since there is no distributor network.