SevenCubed - 1:10 am on Jul 2, 2011 (gmt 0)
Woah woah woah woah! Woah woah woah woah! This is one of the most incorrect statements I've ever read on these forums.
Not by a longshot. I re-read the OP again and I still understand it as dpd1 implying he is considering just bumping up the cost of the product wherein the cost of shipping becomes a hidden expense when he said..."How about just adjusting the prices and offering free shipping for everything. The problem is... The prices would have to be raised to cover it...". In that case he would have to pay tax on a profit he's not actually making plus he would loose the tax credit of a business expense. The spread between the two can become quite significant. Shipping cost seamlessly buried into the product cost cannot be claimed as a cost of doing business. It has to remain a separate item on his books. Unless I misunderstood the OP that stands true. To resolve this maybe dpd1 can clarify if that was what he was considering or did I misunderstand the OP.