Michael Williams, who opened a small music store selling compact discs on September 5, closed his shop on December 19. What caused the enormous change? One reason was that the location of the music store was too remote to find out. It was on a small side street just outside of town. Moreover, there was a shopping center that had two large music stores appealing to people nearby. Another reason was the cost price. Michael Williams had spent too much money on the CDs before investigating what the residents liked. He also paid his employees too much salary that was over budget. In addition to the cost price, the shop also opened at the time when fewer people walk past the store. Finally, the CDs didn’t sell well because of the residents of the Fairfax are approximately middle-aged people who maybe weren’t interested in the CDs for hip-hop and rock. In sum, before running the business, people should think over every situation and do correct alternatives.
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