Nick and Helen Kikalos - Page 7

                                        - 7 -                                         
          prices.  Nick's Liquors advertised itself as a discount liquor              
          dealer.  Its consistent goal was to maintain the lowest prices in           
          the area.  It maintained the warehouse facility at store No. 1              
          primarily to house large-volume purchases of beer and liquor.               
          The warehouse was capable of accepting full truckloads and                  
          pallets of beer.  Petitioners were frequently able to buy in such           
          quantities to take advantage of quantity discounts and of                   
          discounts in periodically issued "deal sheets" from the                     
          wholesalers.                                                                
               Nick's Liquors operated in a highly competitive environment.           
          Petitioners' stores were near the Illinois border and the city of           
          Chicago.  Because of differences in State taxes, cigarettes sold            
          for considerably less in Indiana than in Illinois during the                
          years in issue.  Liquor, on the other hand, was generally cheaper           
          in Illinois.  Nick and his family tried to keep prices low, not             
          only to compete for the Illinois cross-border cigarette business,           
          but also to keep Indiana beer and liquor customers from making              
          their purchases in Illinois.                                                
               Nick's Liquors ran weekly advertisements in the local                  
          newspaper, the Hammond Times.  The advertised prices reflected an           
          average gross profit margin of 6.31 percent in 1990, 6.52 percent           
          in 1991, and 6.06 percent in 1992.  Many of the ads were small,             
          single-item "rate holder" ads.  The heaviest advertising took               
          place in December, when Nick's Liquors advertised many more items           
          than usual.  Except for the month of December, the advertised               




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011