I am setting up a small business selling kids bikes (4kg). My first batch will be arriving soon and wanted some advice on postage to Australia. The box is too big (only just) for auspost flat rate and my competitors seem to be between $15-$20 which is dirt cheap. I don't want to charge actual rates as it may scare off customers. Free postage is an option but i will loose out (no profit) posting to WA, NT etc.

Do I take a hit on the distant locations or charge?

Is there any other options?

Help?