The owner of a small gun store might well be married and have a couple of kids. The Gummint says he's in poverty if his gross income is less than (roughly) $25K a year.
That's $25K net/net/net after all store overhead. Near-poverty.
Say he has an inventory that's cost him a half-mil to build up. That's not all that hard to do if you've been in the business for any length of time.
At least one clerk: $20K or more. Rent, $12K or more. Utilities, $5,000 a year, maybe. Phones/computer/FAX costs. Accountant. Insurance? Aside from liability, at least $1,000/yr premium. Liability? Maybe another $1,000? And, possibly, the cost of a line of credit for operating capital from his friendly banker.
So he absolutely must make an average of somewhere around 25% on the overall sales, minimum, just to keep the doors open and eat better than poverty level.
And that's just a quickie rundown of numbers I've seen for various small businesses; I don't even pretend it's exact.
Could be worse. He might have gone into the jewelry bidness.
, Art