If in order to use only the best priced shipping, I think it would be relevent if you end up using UPS ground or FedEx ground (yes, FedEx ground does exist) as part of your shipping policy. Only because I wouldn't place an order since I'm on the West coast - it's a given fact that a ground shipment would take 5 to 7 days to reach me from the East coast. Sometimes longer. This is from experience (I buy a lot of things online). For some consumers, that's a less appealing option. You may be limiting your geographic market.
When purchasing from a Dealer that uses reasonably priced Overnight/2nd Day or 3-Day shipping, then I don't care if they're in Maine, Florida, Minnesota, Texas, etc. - proximity becomes a moot point.
An issue to also consider that concerns the typical consumer is WHEN will the shipment go out. If I place an order online and the shipment goes out three or five days later, I'm not a happy camper. It's that much more time that's added on to delivery time. Prior notice and unexpected delays are the exception, of course.
Bottom line is, I don't shop online with concerns for "location" if they're offering low-cost 2nd Day or overnight shipping. What I find more relevant is the following three criteria:
[*] Customer Service
[*] Prices
[*] Shipping Policy
-Jim