I am curious as to what you all feel qualifies someone to be a gunsmith. What should he be able to do?
For instance is he a machinist, engraver, stock maker, barrel maker, etc...?
Could be anything from someone who installs grip panels on 1911s to someone who can build a flawless race gun from scratch. It kind of depends on where your interest lie and what there is a market for in your area.
What should he charge an hour?
Most of the ones I've seen charge flat rates per job, like $50 for a trigger job, $25 to install sights, etc.
What should his mark up be on his merchandise?
Merchandise will usually be dictated by the going rate of other gun shops in the area, or you can match it to prices on the internet if you want a lot of business (although that might not be possible buying in small volume). The services are what people will come to you for usually.
What services does your favorite smith offer?
Depends on what kind of gun. Being able to do nice triggers, good stock bedding, smoothing actions, carry melts, basic stuff (installing sights or other aftermarket parts) of course, refinishing (bluing, parkerizing, dura-coat, etc), fixing problems like locked-up actions, messed up barrels, other people's fubars. I'm not into engraving but some are and there's probably money to be had there.
I think these are the guys that have ads in the gun magazines, haven't tried their courses but it might be a place to start if you are a beginner
http://www.americangunsmith.com/