The day of brick and mortar LGS's has probably passed.
I hope not. The gun business has always been tough. Before the Internet there was Shotgun News.
Having been in the business you are correct that it is impossible to stay open just selling new guns. However money can be made selling used guns. Buying used guns on the Internet is always risky as it impossible to actually inspect the gun before buying. Plus UPS / Fed-Ex makes shipping expensive.
A new LGS open recently that is doing transfers for only $10.00. Frankly I don't think that is wise (profitable) but it has made me repeat customer. The Lady brought a Ruger SR22 from them earlier this month and I have a AR Lower on order with them.
Their real money is gunsmithing. He does Ceracoating so I plan on having him do my Purple People Eater AR this winter. No idea how good of "gunsmith" he is. He seems heavy into tactical AR's but if that is where the market is so be it.
They have a ok website but it is their blog that is really good.
Retail inventory is small and mainly for AR's.
Ordering over the Internet will lose some of it's appeal as States start collecting sales tax on orders. As that is a huge cash cow look for more States to quickly start passing laws to do so. (South Dakota vs. Wayfair)
https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf
There is a lot to be said for being able to handle the product and good old-fashion salesmanship. While in the shop a few days after The Lady brought her SR22 he asked me how she liked the gun. I told him that we can't go to the range until the weekend but that I had been doing a lot of reading and was really impressed with it. He smiled and said I have something to show you. He went back into his shop and brought out a SR22 with the Ruger Suppressor on it. WOW! I love it. I am trying to choke down the cost $$$ and hassle of buying a suppressor but, dang, that combination is darn near the cat's meow for use here on the farm. Especially dealing with critters that like chicken.
And what the heck if I am going to jump into owning a suppressor I might as well have another 22 pistol to use it on. More $,$$$.
So far they have done a gun transfer for me (earlier this year), sold The Lady a pistol, sold me a AR Lower and I am planning on him ceracoating a AR after Christmas plus he is baiting me for buying a Ruger Suppressor.
Oh The Lady really likes his wife (husband & wife small business) and said she wants us to do all of our future gun purchases from them even if it costs more.