Your rifle can do much better, and a lot has to do with the ammo, and what your rifle likes.
Lot's of folks shoot a rifle right out of the box with the first box of ammo they buy, and some get lucky and the rifle likes what they feed it.
In your example his rifle may not.
It can get expensive trying to find the right load or brand buying manufactured ammo, and like Lonny suggested the barrel needs a few, and sometimes a lot of break in rounds.
Check the FAQ's at the top of the page and it will tell you how to break in a barrel and also all about accurizing and it's all there.
Before you get too deep in debt buying ammo you might want to try the "O" ring, and check for oil on the latch shelf and then pick up a box of Remington or some other fairly inexpensive ammo and try those tricks first and see if it improves, but you should at least expect around 2 to 2 1/2" with a green gun, what the factory claims it should do.
The FAQ's give a lot of info, and there are other options that you can check back to the forum after another range report or two.
If all else fails you can send call CS and they may have you send it in.