If gunshops were as profitable as some of you think there would be a whole lot more of them. Instead there are fewer every year. The markup is very little on new firearms and the big retailers (mostly Walmart) can sell the cheaper guns that used to be the bread and butter of a gunshop for less than a small dealer can buy them. Likewise ammunition and some basic supplies and gear.
That leaves gunsmithing and higher priced and custom stuff for a decent profit, but even with used guns the average is still nowhere near the 40 to 50% of gross that other types of sporting goods get for regular retail sales.
Out of that the owner has to pay rent, utilities, insurance, licensing, salaries if he can afford to hire anyone, and a lot of other stuff. He has to live on what's left.
I considered going into the business. I decided it was a good way to make a small fortune .... If I started with a large fortune.
