It's better financially to list a lower price and higher S/H fee because your commissions will be lower from EBAY. And, as a side benefit, you get more page hits from visitors because they will see a lower bid price and be more apt to click on your auction.

However, some people are turned off by high S/H fees and Ebay prohibits unusually high S/H fees...so don't set it at some unreasonable cost.

Hugh