I guess what I am saying is this... it costs more than 6.99 to ship #40 of grain to Mass.
You are running a business, not a charity.
Therefore logic would dictate that some of the cost of shipping that grain has been added back into the #40 of grain.
If I come into your store and buy that #40 of grain, I am also paying for that shipping cost that is rolled into it, even though it isnt being shipped.
The guy in Mass. is getting a great price all the way around, because you have flat rate shipping, and what shipping cost there is rolled into the cost of the #40 sack of grain is not enough to eat up his savings in shipping, making it more of a value.
Say you add $10 to the cost of the #40 sack of grain to offset the fact that you only charge 6.99 to ship it. If I come into your store to buy the sack, I am still paying that $10, not a good "value" if you will.
The guy in Mass. is essentially paying that $10 that is rolled into the cost of the sack of grain, plus 6.99... so 16.99 over the cost of the grain itself... which is a great value seeing as though regular shipping would be $50.
Morebeer doesnt offer FREE shipping... that cost is spread throughout thier products as a mark up... they arent a charity either, logic dictates that they arent paying for my shipping, they are making it up elsewhere.
The trick is finding the shop with a combination of the lowest shipping cost and cost for goods. Generally different shops will be better on price on hops, grain, equipment... etc. No one has the best price and shipping on ALL items.
Delivered price IS what matters, so again, AHS delivered prices are extremely competitive on buk grain to my ZIP. The only way I can save an appreciable ammount is to go 10 miles to my LHBS and pick up a sack... and that isnt really a fair comparison.