The OP is charging the 2022 published rate for HAZMAT items as charged to a shipper by either FEDEX or UPS, which have the same rates per shipment $44.00. Other large companies are able to reduce shipping charges, including HAZMAT in order to make it more appealing to their customers. They are able to do this because of the large volume of all products which they sell. In the end, it's similar to a grocery or retailer selling items for actually less than what they paid for it, and its called a "Loss Leader" product, including "Buy One, Get One Free". More than likely, Grafs sells way more smokeless powder and primers than they do black powder and caps, as well as thousands of other products.
FEDEX 2022 Rates
UPS 2022 Rates
Grafs' charges a HAZMAT fee of $23.50 (4 pound minimum on powder), while on the other hand, Midway USA charges only a $15.99 HAZMAT fee. Based on Midway's lower HAZMAT, is Grafs gouging the customer on HAZMAT? Midway USA routinely offers "Free Shipping" on items other than HAZMAT, including bullets and lead ingots, therefore, should all others offer "Free Shipping"? Small "Mom and Pop" shops can't afford to absorb these cost, I know that our shop can't, we hear complaints all the time about our shipping charges being too high. Other than an extra $1 or so, to cover the cost of boxes or packing material, we charge exactly what the USPS, UPS, or FEDEX charges us. We can't afford to charge any less for S&H; however, I guess we could raise the price on all products in order to give the appearance of a lesser shipping charge. It's impossible for a small business to compete with those who generate millions in sales. Every time I order glues or chemicals that is in a quantity over 1 quart, I have to pay the $44 HAZMAT, so I factor that into the product and pass it on to the consumer.
I for one, am glad that the OP is out there providing his service and stocking powder. When folks were out there going nuts looking for powder and couldn't find it, at least the OP had it in stock and at a lower price than what I could buy it for locally prior to the crisis.
Blackpowder77, THANK YOU!