Here's what I would do. First of all, I really doubt that I could produce a high-quality, high volume product that can compete with the big shops that produce nothing but magnets. So I would sub it out.

Set your friend up as a customer of yours. Let him order the product and pay you. Then he can deal with the headaches of getting paid.

If this doesn't work, get him in touch with the distributor and walk away. It sounds like you are skeptical anyway.

High volume would require a large rotary die-cut machine and dies. It would be preprinted then run through the die-cut machine. Volumes for this equipment would need to be in the 100,000 per each item.

Smaller job runs will be more expensive per piece but can be done with the advice in the posts above.

Philadelphia, PA (Really Bensalem)

When you finally understand it completely... it changes.