As a business major I have taken courses in marketing and the truth is people would much rather pay a higher price and see Free Shipping than pay the correct price and see $10.99 for shipping. Also, when it comes to handling a lot more goes into it than what meets the eye. Boxes, packing material, labor, paper, tape, gas, insurance on the delivery vehicle, etc. I dont mind paying a couple of dollars for handling when I am buying part (especially big ones), because I know first hand how much work it is. I too own a small business. We make custom acrylic duck calls and it takes on average 4 hours to make a custom call and we only charge $80 for the entire thing. If you look into how expensive the materials are too make them you will understand. The world revolves around money, like it or not. And peoples time is not cheap.
By the way, Congrats Bob!