How do you make free shipping work for your local customers?

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I started free shipping in my shop and offer 5% discount on orders for more than one item in order to balance out shipping overage. For local customer it is  still not enough.  In some cases, they are charged $5 - $10 more than it actually costs because of combined free shipping items.  Shopify does not allow additional discount when I have  already automatic discount. If I use coupon instead of automatic discount, some customers may forget to use it.  If I want to set up special discount specifically for my local customers, I need to use app but it costs monthly.  I am not sure if it's worth it.  Do I sound ridiculously conscientious?  Our local customers have to pay tax as well, so I do not feel good about shipping overage.  I would like to know how other vendors handle this issue.


Thank you.



Harmony Lantern