That seems low to me but maybe I just prefer brand names and reputable quality. I usually buy a scope that costs as much as the rifle itself. I've tried the cheap Barskas, BSAs, etc. and they've all been garbage (In my experience at least.) The only BSA I've got to hold a zero was the one I put on my browning t-bolt .22. Never had a problem with a Leupold, Nightforce, or Zeiss though.
On a side note, I don't understand this statement. The USMC rifle qualification includes shooting out to 500m with iron sights, or at most now a 4x ACOG. How exactly is 200m a stretch for a 7x scope?