Thanks for posting their reply - he does appear to be honest. But that doesn't make for a good publisher. They have to know the business, which means pricing out a book before the contract is signed. Production is expensive, and you have to have your own design team in order to make the title profitable. It sounds like he's trying to shield himself as much as possible (good) by staying with local authors and marketing locally to the stores. The trick will be to spread out beyond his own borders, which is an entirely different ballgame.
If he's concerned about the percentages with Amazon, he'll freak when it comes to creating a relationship with Ingram, or being with a distributor. Teaming up with a distributor takes anywhere from $5,000 - $20,000, so he best be prepared. It takes money to make money. But, it does sound like he's trying. Whether it's a good idea to let them try on your own book is another matter.