Archie,
The idea saves the buyer $3.03 ($4.05 less $1.02 = $3.03) each time for a one chip purchase, less the prorated share of infrequent lost mailings, which in this case would be the buyer's responsibility. (The cost of this lost mailings is discussed below.)

The "traditional" way would be priority mail ($3.20) plus insurance ($.85) -- total of $4.05.

The new proposed way of sending a postpaid mailer costs an extra $1.02 -- the mailer costs about $.25, the extra ounce in sending the mailer costs $.22, and
the postage on the mailer is about 2 ounces worth ($.55).

The $3.03 savings should be reduced by the chance of having an uninsured package lost. Let us say this happens 1 out of 20 times. Let us say the item cost $15. Over 20 times the buyer saves a net of $45.60 ($60.60 - $15.00 = $45.60). The $60.60 is ($3.03 x 20).

Finally, let me say this about insurance. I think many buyers would pay the shipping and handling, and forgoe the 85 cents insurance on a cheap item if they are given that opportunity. I, myself, do it..................Another point on insurance is this idea I am thinking of doing when I am the seller: charge the buyer 85 cents for insurance if he wants it, and then I plan to mail it UNINSURED, not to save the 85 cents, but rather to eliminate the hassle (standing in line, etc,. at post office) of sending it insured. Then if the buyer puts in a claim to me saying it is lost in the mail, I'll send another chip, insured this time. (I would do this where I have a lot of chips.)

Robert