RETAILING: Give 'Em a Free Ride

When he was running a fruit stand across from Kansas City's Union Depot 40 years ago, Isaac Katz sold oranges at three for a dime. "But Ike," his customers would say, "the other boys get a nickel apiece." "Yeah," Ike would answer, "but they sell one and I sell three. See what I mean?" Ike's kid brother Mike saw exactly what he meant, and soon was running another cut-rate fruit stand nearby.

Since then, Ike and Mike Katz have become the cut-rate kings of Kansas City, Mo., with 16 drugstores there and another 13...

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