Fred, sorry if I took your message the wrong way but the subject of excess shipping charges is one that really riles me. Actually, I believe I treated you fairly well, considering how I light into most dealers who charge way more than you do.
But to answer your question directly, which would you feel more comfortable with? Personally, I'd rather be charged actual shipping cost or $1.00 whichever is more plus what ever you want for the chip. In your scenario, I'd prefer seeing an asking price of $8.00 for the chip plus $1.00 shipping. I think you would get a much better response that way, than charging less for the chip and more for the shipping.
But of course I'm talking about other people. As most chippers on this board are aware, It's got to be at least a "T" or a "U" rated chip before I pay more than $7.00 for it.
Remember that Wal-Mart did't get to be the largest revenue priducer on the NYSE by charging more than the market will bear.
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