The question shouldn't be why are they so expensive, but rather: How much would you charge if you built an indoor range, paid the electric bill, hired employees to run the place, maintained a air filtration system, taxes, INSURANCE, mortgage, etc.
$15-20/hr sounds reasonable.
It's kind of funny that folks seem to get
upset, like personally offended, that a shooting range might cost more than whatever they think it should.
Unless it is a state-funded range, paid for out of the taxpayers' pockets, then it is a business -- either for profit, or non-profit. There is some business model in place that says $xxx,xxx must be spent up front, $xxx,xxx must be spent every year, so $x,xxx,xxx must be taken in each year.
Many, MANY things can go into that equation. The list of expenses involved with Range A may be completely different from those involved with Range B. Profit for the owner is about the very last number that gets plugged in, after all the development costs, insurances, operating costs, mortgage, taxes, salaries/wages, fees, maintenance, accountants' fees, and everything else that has to be spent.
Range A and Range B might be only 5 miles apart, yet have vastly different numbers going into the equation. Range A and Range B might offer a different experience and attract a different clientèle. Range A might have a "club" structure and Range B might be strictly commercial/public. Range A might be on land left to the owner by his great-great-grand-uncle, and Range B might be carrying a $million or two mortgage. Range A might have good insurance while Range B skates by without. Until you sit down with the owner & his accountant and review his balance sheet, you've really got no business casting judgment and using words like "exorbitant."
In the end, however, all that matters is whether enough folks will come and pay whatever each range has to charge to cover all those costs. Vote with your wallet. If Range A closes down after a year, then they weren't charging enough. Or maybe they were charging too much and not enough folks came. Maybe the level of service/accommodation they wanted to provide was too expensive and not appreciated enough by the customers to justify the higher cost. A well-maintained range with mobile target carriers, a rental counter, and solid insurance is a joy -- unless you're used to paying the rate for shooting at rocks in a gravel pit.
Knowing the area and the target clientèle is really the key to successful range operation, I think.
As a case-study, my club (established back in the '60s, I believe) costs $55 a year for a single membership and includes 8 pistol ranges (including 360 deg. shoot houses), a rifle range, an indoor pistol range, archery range, and trap range, as well as a clubhouse/classroom facility (with bathrooms, kitchen, A/V equipment, heat & A/C) and hunting land. The club house is a little run down. The indoor range doesn't ventilate, like, at all. There's always some degree of range maintenance that
still needs to get done. There is no staff or even caretaker. There is no shop with parts, supplies, ammo, or certainly guns. On the other hand, there are a couple of very active competition groups who really make the place fun and who manage to keep the facilities up well enough.
Another range that's only ~20 miles away is a pretty new commercial facility with a very modern indoor range, pro shop, full-time staff, and other services. I once calculated that if I did all my year's shooting at the other place, the range fees alone would cost me nearly $6,000. But that range isn't FOR me. I'm not their target market. They're located down near Baltimore, just over the PA line and they bring in the much more casual, much less involved/experienced shooter, interested in an outing to go shoot every few months. Their business model seems to be working for them, even though they charge (...doing a little rough math...) about 100 TIMES what my club costs me per hour.
Well, shucks. That's surely not FAIR!