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Which one is better pharma franchise or PCD Pharma? Eligibility and Best way for distributions!

(Last Updated On: March 5, 2018)
Query:
I am a pharmacist from Chennai.
I read most of your articles after read I am thinking to start own pharma marketing. Your articles are really nice. I am pharmacist I have experience in marketing. I am planing to start own pharma marketing.please advice me
Which one is better pharma franchisee or PCD Pharma ( Initially only me going start work).
What is the Eligibility pharma company need from us because I m going to apply for Drug License Number and Tax Identification number next month.
Which is the best method of supply to retailer through another distributors or from own distribution.

Response:
Your appreciation is our motivation. Thanks for your appreciation. We will try to provide you good information in future also.
Its very pleasing to hear from you, you are starting your own pharma marketing.

1. Which one is better Pharma Franchise or PCD Pharma?

Very few people try to know the exact meaning of Pharma franchise marketing and PCD pharma marketing. These two co-related terms are used for own marketing in pharmaceutical sector. Main difference between Pharma Franchise and pcd pharma is sales target and eligibility of person or distributor. In franchise marketing, companies require sales and marketing persons having minimum of 2-4 years of experience as manager level post i.e. area sales manager, regional sales manager etc or big pharma distributors or c&f having own marketing team. Area allocated in franchise marketing is large and work should be totally ethical. These are the few primary requirements for franchise marketing. Companies provide direct support related to marketing, sales and promotion. But In PCD pharma marketing, no sales target, small area, freedom of work like net price basis, ethical or generic distribution etc. In pcd marketing, every one is eligible e.g. medical representative, small distributors, chemist etc. Companies don’t provide much support in marketing, sale and promotion except bag, visual aids, reminder cards, catch covers or other small promotional materials. In general, pcd is also pharma franchise marketing but at small scale. You are starting alone so you should start with pcd pharma marketing. It will be good option for you in starting.

2. What is the eligibility require by pharma companies?

Pharmaceutical company will require whole sale drug license copy and sale tax registration (TIN/CST) copy. These two documents will be required for billing purpose and supply of products. Some companies will also ask for bank statement of firm ( especially in case of franchise marketing ). You can also provide drug license copy and Tin/cst of your distributor if you don’t have own whole sale firm. In franchise marketing, pharma company may require your experience documents and salary statement but in pcd marketing, there is no requirement of other formalities.

3. Which is the best method of supply to retailer through another distributors or own distribution?

Having own distribution is very good option for starting pharma franchise or pcd marketing. But if you don’t want to start with own arrangement, you can simply start with appointing distributor. One of the main benefit for own distribution is that you can work with secrecy in market. No one is going to know that you are working with pcd company. In other’s distribution, distributor will have all your rates and secrets, so it will cause difficulty for you any time but there are many advantage also if you start with appointing distributor also. Read these two articles. Hope these will be helpful for you in deciding!
Will it be advisable for me that I appoint a stockist here and start working ?
Why should one have own whole sale distribution firm rather than appointing distributor for pharma franchise marketing?

Query:

Thank you so much for a better reply…I appreciate your work……I have decided to start a pcd company but confusion about the rate of products…for a same product there is a great variation in rate of various companies….confusion about quality of products…can u send me the ideal rate list for pcd base company? Another question is that if I have no d/l number and TIN number but I have chosen a distributor so how many percentage i will have to pay to the distributor?

Response:
Rate will vary company to company. You may bargain for rates in price list of company. Compare four-five company rates and product range. Then you should decide which will be better option for you. We are also attaching price list of our companies for your references so you can compare product and rates. These rates are common rates that are available in pcd market. You should finalize at less rates than what we are sending. Also you should consider offer provided by companies. This will reduce your cost.Read Here about sale and purchase balance while company provide offer

If you don’t have D.L. number and tin number, you can start with appointing distributor. Distributor will take nearly 10-15% margin at invoice value w/o tax or as per mutually agreed. Most of distributors take tax amount and some 10% commission from person who do work.

Hope it was helpful for you…

For any query and suggestion mail us at pharmafranchiseehelp@gmail.com


Related Articles:

How to calculate profit margin, net rates, trade rates in Pharma franchise Marketing?

Difference between pcd work and prescription work

What is Pharma Franchise Distribution and Marketing Agreement?

How to calculate Maximum Retail Price, price to retailer and price to stockist with any MRP?

Full Time Blogger, Part Time Entrepreneur and Partial Time Helper for New Start-UP's in Pharmaceutical, Ayurvedic and Nutraceutical Sector. Contact him at pharmafranchiseehelp@gmail.com

3 Comments

  • Rushabh Shah

    HALLO SIR

    PLEASE GUIDE REGARDING 3rd PARTY MANUFACTURING. WITH MY FRIEND WE BOTH ARE IN MASTER IN PHARMACY AND WE BOTH HAVING ONLY MANUFACTURING EXPERIENCE ONLY NOT IN MARKETING

    SO PLEASE GIVE ME SUGGESTION WHAT WE HAVE TO START FOR PHARMA BUSINESS AS OUR EXPERIENCE IN PHARMA BASE IN PRODUCTION ONLY

    WE HAVE NOT ENOUGH CAPITAL TO INVEST HEAVY BUDGET IN MANUFACTURING PLANT

    PLEASE GUIDE TO US WHAT WE DO ?? WE ARE NOT READY TO LEAVE JOB BEFORE START BUSINESS INITIALLY AFTER APPROX 6.0 MONTH SET OUR PRODUCT THEN WE PLAN TO LEAVE OUR JOB …SO PLEASE GUIDE

  • PCD Pharma Franchise Help

    Sir,
    Third party manufacturing is a process in which manufacturing company manufactured product for other pharma company at some percentage of margin.
    Read more here

    We know how much it is difficult to establish own business while doing job. You can't leave job until you have enough income from your business that is necessary for paying your expenses.
    Other than this establishing manufacturing company is heavy investment project.
    There may be few options:

    Start own business based at your knowledge by providing consultancy to persons who want to start own manufacturing units. They will happily paid you if you will provide best services to them. May be they make a contract with you as consultant and you start getting regular income.

    You can search third party for your manufacturing company at percentage basis.

    You can also partnered with any marketing/sale person who have fulfill vacant place and start with few products. For example you can associate with any medical representative and you can handle products procurement work like manufacturing, packing etc at third party basis and he can look after market and sale….

    For more detail mail us at pharmafranchiseehelp@gmail.com

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