Nick and Helen Kikalos - Page 8

                                        - 8 -                                         
          sales prices were limited to a duration of 1 week.  In the                  
          December advertisements, the sales ended December 31, or "while             
          supplies last".  Nick's Liquors also held "in-store" sales for              
          items that did not appear in the newspaper ads.  In some                    
          instances, petitioners' personnel kept items on sale beyond the             
          period indicated.  Additionally, there were "perma sales" of                
          items that went on sale and retained the sale price indefinitely.           
               Nick's Liquors also sold merchandise that was not on sale              
          and produced substantially higher profit margins.  For example,             
          in September of 1991, it sold "Old Style" beer at a price of                
          $9.98 per case, which represented a margin of 15.8 percent, based           
          upon the wholesale cost of $8.40 per case.  Nick's Liquors sold             
          750-milliliter bottles of Riunite wine for $3.99, a margin of               
          26.1 percent.  One-liter bottles of Jack Daniels whiskey sold at            
          a margin of 17 percent, and 750-milliliter bottles of Andre Pink            
          Champagne sold at a margin of 22.8 percent.                                 
               Petitioners' competitors in northwest Indiana had a markup             
          on warm beer, sold by the case, of 5 to 6 percent.  The                     
          competitors maintained a gross profit margin of 7 to 13 percent             
          on liquor, although the margin would be higher for slower-moving            
          items.  The price of beer remained fairly stable during the years           
          in issue, and profits ranged between $.10 and $1.00 on a case for           
          warm beer.  Although Nick's Liquors' margins on some merchandise            
          was as high as 26 percent, those margins were an exception to the           
          general rule of substantially lower margins.                                




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