Note: As of mid-2019 this post is 5 years old. Some aspects may be dated. However, the core lessons hold true for the new author looking to self-publish or an entrepreneur looking to start a small publishing business.
When a new publisher is looking at printing options, there is a temptation to print too many copies. The more books the publisher orders, the bigger the discount the printer will give. It is very easy to fall into the trap of asking for a quote for 1,000 copies and ordering 5,000. The discount of 25% to 50%, or even more, that the publisher would get by ordering 5,000 copies causes the publisher to forget everything discussed in the book pricing chapter.
I was guilty of this mistake, once. Then I vowed to never again forget one simple rule: print only what I have sold. Today it is easy for a publisher of any size to use offset printing, Print-on-Demand, or electronic formats to publish their books. These options allow the publisher to develop a game plan that will stick to this simple rule.