As an aside, I've frequently wondered why the publishing industry hasn't gone to POD for all but its very top-list authors--JK Rowling, John Grisham, and their like.
Granted, there are economies of scale with larger print runs (10,000 and above); but what about the costs incurred by publishers in shipping and storing books, and accepting returned unsold copies? With booksellers in most cases able to insist upon returning unsold books to the publisher as a condition of offering them for sale, the whole industry is just one huge consignment operation. Wouldn't it make sense to accept higher per-book production costs, but print only what is ordered with virtually no unsold books or other "carrying" costs?
Good luck Peter with your enterprise. You might visit Luminous Landscape; Michael Reichmann wrote an article there within the last couple of years about his experience getting books printed overseas--China I think.