Hi Gunnar, great post here. You touch on many tough points.
What happened to the 80 some odd % of small gun dealers / smiths over the last 10 years? They failed to adapt. Change is inevitable, either go with it or die. Sad to say, a lot of businesses didn't come to this realization.
In terms of making a living, yes it can be tough. I have a very good friend in SK who's a dealer / smith, and I've been watching him strugle with the business for years. He's survived, but it ain't been easy. I try to help out when I can, but I've got family and day job of my own. And it's tough to find new blood when the call of the Patch becons those with skills. Yes there's lots of hobbiest's out there to cover gaps here & there, but not a lot of new businesses. Marketing is definately a skill, and some people got it, most don't. But it can be learned.
One point that is well worth mentioning. We, as gun owners and users, tend to be our own worst enemies. Just the way I've seen dealers and smiths get treated, it's no wonder no one wants to step up to the plate. You've seen the examples, the one's who go to a show or shop and whine about the cost of a small repair or commodity, "But this big box or supposed wholesaler store is selling that at this price!" or "I can order that out of the states at half of what you want" or "Joe's second cousin on his mother's side has this tool, he'll do it for me cheap." Well fine, if you can get it at that price, why are you standing here telling me? Go get 'em tiger! (The joy's of customer service!) Then when the local guy folds up shop, everyone complains about regulations, or the high prices, or what have you. They wonder what the problem is? Well fellows, go look in the mirror.
Also realize how much it costs in permits and liscence fee's to run a shop. A few thousand dollars if you do any importing, plus time and hassle. Plus try to keep up with rules that no one understands and even fewer can explain to you.
Every one wants a bargian, no one wants to get hopped. But there is a cost to doing business folks. And has I overheard one frustrated dealer tell a client "It's either this or welfare, you can pay me now or pay for me later."
But I got and stay involved because I still manage to have some fun in all of this. I like guns, enjoy playing with and working on them. As do a lot of the guys out there.
OK, rant mode off. Just finished a gunshow last weekend, and everything listed here happened there. Bottom line, get out there, support your local boys where practical / possible, have fun, be a smart consumer and try to understand what these folks and the industry in general are going through. You don't have to like it or agree, but at least be understanding. Fair enough?