Discount shipping for collection

Currently I have shipping setup as £3.50 which is applied when customers pay for the goods with card / paypal, but if the customer chooses to collect their order i dont want the shipping costs added, is this possible?

Been thinking about the same issue - would a workaround not be to use a coupon code e.g. "collect" = discount eq shipping cost ?
(creative use of coupons solve a lot, might not be pretty - but gets the job done)

Hmm, might be worth playing around with. My workaround was going to be to setup an extra page on the website called something like 'Order for Collection' and just put in an order form using the Joomla extention, Smartformer, as i already am using this in a different area of the site anyway.