Can you explain pricing objective?

Our competitor is Treezero, a company who produces sugarcane waste into paper, which is located in Atlanta, Georgia. We are using this company as a guide for Shugar Cane Company's costs to produce paper, yet we know that our prices will be less because we are in the same area as the sugar cane producing plants in the Florida Everglades. I reviewed information from Staples and the price for a ream of our competitors' sugarcane waste paper is $62.99.In addition, I used the information from an article written by Ryan Carniato, Shariful Islam, Chun-Jiun Wang, Wilson Yeung, An Investigation into Sugar Cane versus Wood Fiber Paper, UBC Social Ecological Economic Development Studies (SEEDS) Student Report, which states that in 2010 the cost of a ream of bagasse paper was $4.50, minus transportation and freight fees, and the cost of wood pulp paper was $4.00. Due to the paper using 2010 costs, we had to adjust the exchange rate between Canada and the United States dollars. In 2010, the United States dollar was worth .9543 cents on June 1, 2010.

Therefore, in US dollars bagasse paper was worth 3.82, and wood pulp paper was worth $4.29 per ream. A ream of paper has five thousand sheets, so our competitors' paper at that time was less than one cent, and wood pulp paper per sheet was less than one cent. These prices reflect Canadian costs not US costs. The purchase price of Hammermill paper in 2010 was $23.99 in the United States.

Our competitor began his business in 2009, and operations started in 2010 no profits were reported. We will use the current prices of sugarcane waste and wood pulp paper to compare the costs per ream and sheet. The percentage increase in the price of paper for today will be used as a base for base cost of wood pulp paper, the increase in price for sugarcane waste paper is one hundred percent. The cost to make Hammermill paper is now $5.89 per ream, and the retailer price is $63.99 per five thousand sheets of paper, and our competitor's price is $62.99 per five thousand sheets of paper the competitor cost per ream is $5.04. Therefore, the price of a sheet of paper is still less than one cent but has improved. The competitor's markup of sixty-nine percent, and the mark up from Staples their average markup is thirty percent, places the paper at a cost of 5.03 per ream.

Our pricing objective involves a lower price for our educational sector, and eventually moving into the private sector through office product retailers. We will offer our paper to at a price of K-12 at a price of $46.61 which is a seventy-five percent markup price. We will grandfather this price into their system until Shugar Cane Paper expands into retail. According to the paper, Paper waste in Schools, https://newspaper.neisd.net/macarthur/2017/10/23/paper-waste-in-schools/, a school uses on average, 350 reams of paper every 10 days, so Shugar Cane Company will receive $16,313.50 with a profit of $12,235.13 every 10 days with just one school. Our targets are Miami-Dade (the fifth largest school district in the United States) with 392 schools, , Collier County Schools of which the Everglades are a part of, which contains 58 schools, this would provide us with and Palm Beach County has 172 schools, and is the tenth largest school district in the United States. Based upon this information, Shugar Cane Company will have a profit of $5.7 million. Shugar Cane has already set the discount for these school districts and will not drop the price any lower. Achieving the goal of these three school districts will give us the experience to expand throughout the State of Florida, and retail stores. We will offer bonuses based upon reached goals in our sales department.