By "American" definition (well, at least by my definition) a kit cutter is an individual or firm who owns a laser cutter (or die cutter) and cuts kits for contract work. I do not own a laser cutter and I do not contract out my services. I contract a kit manufacturer to cut my kits. I supply the laser cut files, my specifications, and they cut the laser sheets for me. For the time being, I would much rather contract the services of a knowledgeable kit manufacturing company than try to do it myself (that is not to say that other "kit cutters" don't know what they are doing). This is most of the reason why my kits are a bit more expensive than others, because I have to pay a contractor.
I cannot speak for Lance and the history of his "kit cutting" endeavors. However, when I bought this small enterprise from him he was using a kit manufacturer, too.
Now, you know the rest of the story.
Have a good day!