Second, check out this link:
http://www.homebrewninja.com/ as this is where the price plus shipping is better analyzed. The site is slow and a bit cumbersome to use, but it tells you instantly where to go for the lowest price on any order, shipping taken into account. So if I wanted a pound of Citra, a pound of Mosaic, and two pounds of Columbus you come in second place between RiteBrew and MoreBeer. Morebeer has free shipping but higher priced hops, RiteBrew is cheaper on hops than you, but shipping is a bit higher and overall I can order from them for $12 and change cheaper on my mythical order.
Now I want more stuff, 10# of C60, 2# of corn sugar, 10# of Special B, 1# of Galaxy hops, and 2 vials of WLP002. For whatever reason, you come in third when I was expecting you to come in first because of your current price on Galaxy. Probably because you do not carry WLP002? So discounting the WLP002, you are FAR cheaper than MoreBeer and AIH, by over $20 bucks. MoreBeer has free shipping, and you would charge me $12.99.
What does this all mean? Not sure, but I think Free Shipping is a gimmick as stores just increase the price of all goods to account for it. I think you charge a fair price for your products, I have been happy with what I bought from you, so I will keep buying from you most of the time. I will say I think you might have the loyalty thing backwards as you will find it hard to get folks to pay you for their loyalty. You are very competitive as the above examples show, that is the real way to win people's loyalty. I think the above suggestion of a points system may be the right avenue for you to drum up more business, as the shopping list website does not take that into account and if you came in second to RiteBrew, I would likely go with you if I was earning points to free/discounted stuff in the future. Otherwise, keep doing what you do!!
