Query related to online b2b pharma company Portal

Query:

It  was very enlightening to have read your article. I am a founder of
an online b2b pharma company that sells medicines in terms of credits to retailers from wholesalers instead of cash. After reading from your article I guess that the money spent on marketing and sales by wholesalers can be effectively reduced by using my website. Now being from a non pharma I have a very big issue in determining the profit margins of the 5 players in distribution hierarchy.
So,
1. Can you please send the price list of all medicines currently
available and their margins to each player?
2. I find very difficult to settle on a ecommerce margin that can be
collected from wholesalers. Can you please suggest a margin?
3. Should I collect different margins for different medicines or a
uniform margin for all medicines?
4. How would I know the profit margins if I were to fix different
prices for different medicines?

Thanks in advance.

Response:

Congrats for your B2B Portal for retailer and wholesaler. Before proceeding further, please conduct complete research in pharma market, so it become easy to acquire market.

Wholesale to retail transaction is already in credit, No Pharmacy and Chemist give payment in cash to wholesaler in India. Payment term is 30 to 45 days. In many cases, it crosses 45 days mark. You need to keep in mind this aspect to associate retailers and wholesalers with you.

Second aspect, wholesaler, distributor and stockist doesn’t spend at marketing. It’s company responsibility to spend at marketing and sale.

Retailers and wholesalers are key costumer only in case of generic medicines. If you also want to sell branded and ethical medicines, Retailers and wholesalers are not key costumers to decide price and margin.

  1. Margins and prices vary according to company and its marketing type, so it’s not possible to send price list of all available medicines and their margins.
  2. A wholesale charge generally 10 percent margin. A wholesaler can give your margin from this 10 percent margin. You can decide 1%, 2% or maximum of 3% that can be afford by a wholesaler against your services.
  3. You can charge differently for different type of margins according to market demand and market competition.
  4. You margin will vary according to market demand and competition. You have to fix it accordingly.

Hope above information is helpful to you…

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

Related: Best Ayurvedic Herbal Products Online

How to Change Wholesale Business Proprietorship?

Query:
 How to I change medicine distributorship proprietorship from My mother name to my name?

Response:


For changing proprietorship of medicine distribution agency, you have to apply for change of proprietorship of agency at local Drug Inspector Office. Visit your local Drug Inspector office and apply for change of proprietorship of distribution agency. Affidavit of your Mother and yours will be attached with file. You need to submit all documents related to your wholesale drug license. Read documents for wholesale drug license by clicking here

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

Related Articles:
Difference Between Wholesaler and Retailer
Difference Between Wholesaler and Distributor
Basic Plan for Pharmaceutical Stockist ship
How to start Carrying and Forwarding (C&F) in Pharmaceutical sector?
how to become Distributor?
How to start chemist shop or pharmacy or pharma retail shop?
How to calculate Maximum retail price (MRP)?
What is Distribution Channel? How to develop strong delivery, distribution channel and supply network?
How to Calculate MRP, PTS,PTR?

How can a wholesaler Sell medicines directly to patients?

Query:

I need to know, can i start wholesale business only for cardiac care while providing medicine to patient directly.
Also have partnership with local doctors to send patients directly to my wholesale unit only for cardiac care as it provides medicine at lower prices to patients directly.

Response:

Whether cardiac or any other section, you can’t sell directly to patients from your wholesale store…
A wholesaler can only supply medicines to pharmacies, chemists hospitals, institutions and other retail outlets only. Can’t dispense to patients directly…

read in detail about wholesale distribution here

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

How to start Medicines Distribution Business in South Africa?

Query:
We have registered a Company in Pretoria and we are planning to distribute the Pharmaceutical products, but we do not have a license and qualification to to that business,How can we ensure that we grow in that field with no overseas based investors and grow our economy.

Response:
In every country there is different things required to start a pharmaceutical company but nearly every country require a drug license to start any type of Pharma Business. In South Africa, you will also need a drug license to distribute medicines under your company name. You need to visit your local drug authorities to collect all details about starting drug distribution. They will help you and will provide you all basic knowledge and details of licenses, qualification and registration, you will require to start you drug distribution business in South Africa.

Here we are explaining brief information about starting Pharmaceutical Distribution company in South Africa.

For import, export, distribution and manufacturing any medicine in South Africa, registration of that particular medicine is must. You have to register medicine you want to market and distribute in South Africa at Registrar of Medicines Control Council. After registration of medicine, you have to apply for distribution License to Council.

Steps before Starting Medicine Business:

  • Apply to the Council for a licence to act as wholesaler or distribute medicines, Scheduled substances or medical devices.
  • Appointment of a pharmacist who will control distribution of medicines and related substances
  • Appointment of an authorized person who resides in the Republic and responsible for all activity related to licensing procedure and interaction with council

Procedure for applying for Medicines Distribution License:

  1. Applicant has to submit application to registrar on a prescribed form provided by council
  2. Registrar will issue a written notice to applicant regarding documents to be submitted to council for granting license to distribute medicine and related substances in reasonable time.
  3. Council will inspect the business premises specified in application
  4. If the council is satisfied with all requirements and arrangement, council will issue license to applicant for distribution of medicines and related substances.

Documents Required:

  • Documents related to Business Ownership
  • Registration of the responsible Pharmacist
  • Qualification certificates of staff responsible to distribute and sell medicines and related substances
  • Copy of Local Area Plan of location of the Business
  • Floor plan of building in which business is situated
  • Blue print of Building and Premises
  • Site Master File indicating procedures and practices to be implemented to ensure the safety, efficacy and quality of medicines and related substances
  • List of medicines and related substances to be distributed
  • Application and Inspection Fee Receipt

Growing in any field depend on many circumstances like experience in field, knowledge of field, dedicated, learning skills, approach toward work and many more. Not all time, businesses require overseas investors, you should have capability, you will not need any outsider investor to grow your business..

Hope above information is helpful to you….

Related Article: List of pharmaceutical companies in South Africa

How to start Pharma wholesale Distribution Business?

Query:

Your suggestions are always valuable.
I am pharmacist i opened my chemist shop few months ago. Now i want to open a wholesale drug distribution company in my area.
1. I have my own license and i know the procedure to get wholesale drug license.
2. And i have my own godown of 50 gaj. Will it be sufficient for wholesale business?
3. And how to get contacts of those whom i have to contact for supplies? I mean to say that from where to get goods for sale and whats the conditions of c&f or direct company?
4. Which will be better ethical or generic drug distribution?How much of margin is there in both of them?
5. Whats the minimum investment required?

Response:

1. Procedure to get wholesale drug license read at our article: How to start wholesale drug license?
2. 50 gaj area is sufficient for starting wholesale drug license.
3. You can contact pharma companies through phone, mail or visiting to them for distribution ship. Read in detail at our article: How to become Distributor?
4. Both ethical and generic drug distribution has own pro and cons. Margin is approximately same in both type of distribution. You can start both distribution in single time. read in detail about difference between generic and ethical
5. Investment required depend at product selection and company delection.

Hope above information is helpful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

How to Distribute Derma Products?

Query:

I am from ——–. I have many clinics and importing some derma products. I also have one distributing company.
But currently I have not distributed any derma products from India. I just bought a big amount of some products from the India and resell back in my country.
I have idea to distribute some of the products.
May I know how I should proceed ?

Response:


Some derma products could be sell out through prescription as well as OTC basis. You can proceed by appointing medical representative and generate prescription from doctors or directly promoted to chemists and other retailers. Selling through generating prescription will be much better option.

Setting-up is strong distribution channel is first requirement for distributing and selling any products. Without distribution channel your all efforts may result to zero. First build a distribution channel then distribute these products: Read in our article: How to build strong Distribution Network?

Hope above information is helpful to you…

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

How to build strong distribution channel for Food Supplement Distribution Company?

Query:

Please guide me how to start my marketing activities by developing a sound distributor network. I am not Manufacturer but have started a marketing firm.
Also guide us in finding commission based marketing person.

Response:

As we discussed about marketing activities how to develop sound distributor network. Finding a sound distributors network is not easy as it feels in first look. As you are starting with nutraceutical products, these products has huge demand in market at that time. But one main problem for nutraceuticals is that they have one and half year of expiry, and if you don’t have good distribution network, then it is possible for met with expiry of these products.

As we discussed, we only recommend you to start with smallest possible batch size for each products. Before launching product, market research is also necessary. For good distribution network,

  • Place ad at business portals, online ad, print media ad or drug books etc for distribution proposal 
  • Build website and promote it to get inquiries 
  • Your first requirement is to get inquiries for your products. More inquiries you will have, more chances to find better distributor 
  • Hire marketing persons who have good relationship in market but it’s good to handle all marketing and sales related work himself to get better results 
  • Meet with distributors district wise or state wise as you prefer. give them best proposals for your products 
  • Use your relationship to convert these to business opportunities 

It takes time to build strong distribution network. You have to be patience during your journey. In starting, you will find difficulties in setting up your network but once you will find few good distributors, it will not be difficult for you to expand. According to entrepreneur survey, it takes nearly 2-3 years for any new born company to establish itself.

Commission based marketing professions are difficult to find, you can read How to search for marketing persons as commission basis ? for more detail about commission basis marketing persons. Or you can also indicate at your ad for requirement for commission basis persons.

For more Articles read our FAQ
Frequently asked questions (FAQ) about Pharma Franchise Business

Enquiry and Plan about Pharmaceutical Distribution

Query:
I am planning to start the stockists business in Chennai with 2-4 companies initially and then I will develop according to the income and no of people working in it. Actually I am in great doubt that how many workers I need and how much I need to invest in this and how much money I have to keep in bank balance offer starting investment so I need your help for this to plan for this business sir. I kindly request you to reply for this query.

Response:


Read complete procedure to start distribution business by clicking here
Number of workers could be nil to any numbers. In starting your work will be at small scale and you can handle it alone. If you feel you can do it alone, you can appoint one or two works in starting as per your need and area covered by you…

Investment may depend at many factors like:

  • Documentation and office 
  • Cost of products you are dealing with
  • Quantity of products you purchase at once
  • Area and Chemist covered by you, and credit given to them
  • Number of persons you employee
  • and many more factors

In your bank account nearly same balance should be available as equal to amount invested in product purchase plus amount invested in to market through credit and promotion.

Hope above information is useful to you…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com