What FBM shipping settings do you use to maximize local purchases?

Most of my orders tend to be on the coasts, though I live in the midwest. I really want to incentivize local orders providing them fast cheaper shipping. While charging more for longer rate shipping.

I went through the shipment wizard on Amazon. By selecting ground only services I was able to narrow my 1 day/2 day delivery to the areas around me. Would I be shooting myself in the foot by offering the 1/2 day shipping at a lower rate than standard?

Thoughts on reasonable per item/per lb fee’s that are somewhat accurate to shipping costs would be appreciated. We generally ship 20x16x4 items which are 8-10 pounds.

Thanks for your thoughts.