Rapid City (Closest major town) opened one, and besides membership they have an hourly range fee. Their range is packed.
We have one in Newcastle. This area is gun friendly and if one gets out of the city limits, zoning is near non-existent. ...
... the indoor range seldom gets used.
That makes sense when comparing a rural town of 3,500 with a city of 70,000. In rural areas, I would expect it to be much harder to support an indoor pistol range than in a more urban environment.
Wow, only a $5 fee to rent as many guns as you want for a day? I can't imagine the range is making any money off of that.
Some things you need to keep in mind.
What are you really selling when you let someone shoot a gun? If they put 50 or 100 rounds through a quality gun, that's probably about a thousandth of the life of the gun. If you can "sell" one thousandth shares at $5 apiece for a gun that cost you maybe $500, that's a profit of 900%.
Sure, you have to clean it now and then, but that shouldn't be a significant expense--maybe it cuts your profit to 700% or 800%.
Second, and much more importantly, every range I've been to has a rule requiring that the customer buys range ammo to shoot in range guns. Every range I've been to has pretty expensive range ammo.
Figure that for every gun the customer uses they have to buy at least one box of ammo. So now in addition to the profit you're making by selling them shares of the gun's life, you're now making profit by selling them ammunition that they must purchase if they want to shoot the gun.
Also, in order to shoot the gun, they've had to pay for a range fee and probably buy targets as well. More profit.
Finally, although this isn't as much of a return as the other factors, people coming in to rent range guns probably aren't saving their brass which means you can collect it and sell it to a ammunition remanufacturer, or perhaps as scrap.