Is it a good idea for a new shop to cut prices at first just to get over the no sales period? This seems like it could be good and bad, so I can't decide what to do...
I don't think that's a good idea at all. It's good to price your work comparatively. Plus, if you price your items too low customers might think that quality is low too. I've noticed that a lot of sellers stated that once they increased they prices - sales started to grow too.
Honestly if things are too cheap I tend to move on while shopping.... And as a seller I think other sellers in your field won't appreciate an undercut ;)