Have I explained Pricing Objective?

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, 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.