For a modern pcp air rifle I would expect one hole/ragged hole groups at 35 yards with jsb pellets. I've pretty much owned them all over the years and if thy don't do that then something is wrong . Accuracy aside the price is governed by materials used and function. The air arms s200 represents the entry
Level pcp and it's as every bit as accurate as a steyr . The Steyr layout makes it easier to reach that level but the s200 is as capable.

So if your gun isn't producing the accuracy that you want it could be pellet type, it could be fill pressure, it could be a bad barrel, it could be you , it could be a mis aligned shroud etc etc etc. But if / when you have ruled out all of these and it's still throwing a shotgun pattern then it has to go back.