Captain Russ,
Gery pretty much nailed it in great depth.
For quick'er' turn around sale on-line, 'Free Shipping' does attract more buyers instantly and so having flat rate inbedded in your item's cost seems to work best ... if shipping within the USA.
For international shipment, it is best to ALWAYS use the on-line calculator offered by most of the shipping companys. Your buyer simply enters in thier location and based on the dimentions and weight of the item, they instantly know what price to pay for shipping alone. Also, when dealing with international shipment, folks like DHL seem to have way better prices so check them out.
If focusing on Guitars, I would rule out USPS and stick with FedEx and UPS (in that order and from our experience).
Thanks,
AJ