Pharmaceutical and Ayurvedic Franchise/Pcd Profit Margin, PTR, PTS


I want to start PCD Pharma business, I have completed all legal formalities like drug licence, Goods ang Service Tax, and all. But I am unable to understand how it works means what is price to retailers, price to wholesaler’s, how margin is calculated etc. can you please help me for the same?


PCD/Franchise model works as prescription marketing. Only difference is that company doesn’t involve in direct marketing but appoint a pcd distributor or franchise to market its product and provide goods at net price basis and provides a handsome margin to fulfill all basic need of marketing and sales promotion. Read in Detail about franchise/Pcd Model and how it works here

You need to fix price to retailer and price to stockist/wholesaler as practicing in your area like 20%, 18%, 10% 8% etc. How much margin is big pharma companies providing to retailers and wholesalers. You can calculate accordingly. You can learn calculating Price to retailer, price to stockist and Maximum retail price by clicking here
Margin in pcd business is calculated by including all expenses i.e. retailer margin, stockist margin, marketing and promotional expenses, tour expenses etc.
Suppose Net Rate: N
Retailer Margin: R
Stockist Margin: S
Expenses and Commissions: E
Profit Margin will be calculated by: M-R-S-E-N
 Hope above information is helpful to you…
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How to Hide Rates from Stockist in Pharma Franchise Marketing?


First of all Thank You Very Much for your website. I got much knowledgeable information about Pharmaceutical Franchise from it.

Nowadays, I am working as a Pharma Marketing Professional since 2 years. But, I have planed for Pharmaceutical Franchise. As I haven’t Drug License, I will do it with appointing a Stockist/Distributor. For this I have less knowledge in some scenarios. Like :

  1. I don’t want to disclose my Net Rate with Stockist/Distributor?
  2. I don’t wish to disclose Net Rate to my Medical Representative?
  3. After appointed a Stockist. Can I stock medicines in my own home?

Kindly resolve my issues/doubts as soon as possible.


  1. If you will purchase through appointing stockist/distributor then there is very very less chances you can hide rates from distributor. In one way you can hide rates from distributor/stockist if company invoice at stockist rate and that will not be possible by a company to do it at regular basis because how they will show increased profit margin. If any company will be ready to invoice at stockist rates then you can hide rates from distributor.
  2. You don’t need to show rates to MR’s. You can handle distributor by own. Don’t disclose any rates to MR’s.
  3. You can’t stock medicines at home. It is illegal to stock medicines at without licensed premises. Medicines can be stocked at licensed premises only…

Hope above information is helpful to you….

Click at below article link to read in detail about particular topic.

How to Attract Pcd/Franchise Parties to join Company?

I am working in a pharmaceutical company as s sale executive.. I am new in marketing.. Please help me how can I attract parties to join pcd in my company.. Some parties says that Rate is high so how can I attract?



If you are facing price problem, you need to re-check rates of price list. Possibility is there, you rates are higher than that are provided by other companies. You should consult your higher staff members regarding this problem. Check rates at which other companies are providing goods to parties. One more thing you can do. Tell to the party that rates are negotiable, ask them to send there order along with required rates. This will help you to understand the requirement of party and rates also.

Higher rates are most common excuses for parties if they don’t want to take any company franchise. You should not discourage by this. Out of 100, average conversion rate is 4 to 5. You should continue your effort to join new pcd companies for your company.

Now discuss what a party look in company when party select a company.

A pcd party attract toward company due to following reasons:

  1. Product Range
  2. Party’s Need (Product party need present in your list or not)
  3. Packaging (Atleast average)
  4. Company Reputation
  5. Price/Rate ( If Reasonable)

Above five factors play important rule in attracting Parties. Price or rates are not primary thing that most of parties are look for. There are chances to attract parties through discussions and conversations but that is possible through personnel meet in most of cases. Through telephonic discussion, there are less chances if don’t fulfill first two requirements. Last three could be ignorable but first two is compulsory. We can’t attract pcd parties, we have to fulfill there requirements.

We have written two article related to finding pcd distributors. These two articles will help you to attracting pcd distributors:

Best ways to attract pcd/franchise distributorsHow to Find Pcd/Franchise Distributors?

More Related Articles:
check list of pcd/franchise companies by clicking here
How to start Pharma Franchise Marketing
How to become Franchisee/Pcd Pharma Distributor?
How to calculate profit margin, net rates, trade rates in Pharma franchise Marketing?
Things before associating with any PCD pharma company.
Which Pharma Franchise Company (PFC) or PCD Company will be best for association? What to do befor
How to face problems like MR’s salary, Profit margin, Market Strategy etc in Pcd 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?
what are the points or precautions need to take before selecting pharma franchise company?
How to develop strong delivery, distribution and supply network ?
10 important tips for selecting pharmaceutical franchise company !
Will it be advisable for me that I appoint a stockist here and start working ?
Things that should be considered before starting pharma franchise business

What will be impact of gst on pcd franchise companies?

What will be impact of GST on pcd franchise companies as we purchase goods from companies on net rates.
Impact of GST at Pcd Companies:
GST is not making much impact at pcd market. Most important impact of GST at pcd market will be increase of Taxes. Remaining will be as usual. Most of companies use to provide net rates without taxes (excluding of taxes). This will remain same. First you have to pay 2% cst or 5.25% vat on goods you purchased from company. Now you have to pay 12% GST on most of pharma products. Rates will be approximately same. May be slightly decrease or increase occur due to excise duty end and end of excise free zone respectively. But not impacted much for pcd parties.
As a pcd distributor, parties were enjoying excise free zone service but at raw material level excise were applicable. That was increasing rates of raw material. Same for areas which were not come under excise free zones. Excise were applicable at 65% value of MRP. This increased the rates at much level. Now excise duty has been ended, hence it will provide the much relief to most of manufacturers. We are hoping raw material prices will come down and manufacturing cost too.

Maximum retail price may also be increased for products which come under DPCO because now MRP will be calculated at GST rates.

Hope above information is useful to you…

For any query and suggestion, mail us at

Secrets behind selling by Appointing Franchise Distributors


I am a regular reader of blog and I am highly thankful for the valuable information you put over there. We have started a small franchise/PCD company. Now we are having 15 products. We are already working in 5 districts. We now plan to expand in other areas also. We will be adding more products accordingly as per demand. Can your team help us in getting more customers/franchise?
We will be happy to work with you and will also pay for your services on share/fees basis as per your comfort level.
Looking for a positive response.


We can help you to provide you best possible ways to get more franchise customers for your company. We are explaining in brief in this mail. Complete details you can read at our article: How to get Franchise/Pcd Distributors for your Pharma Company?

Read also similar article to your query: How to find Pharma Franchise Distributors?

Above linked articles will provide you basis things to search for Franchise queries.

For adding more franchise customers in your company, you need to generate franchise queries. For generating franchise queries either you can take promotional package of any online promotion agency or promote your company through building your own website…
Other than website promotion, you can use common marketing tools like as below:

For any query and suggestion, mail us at

How Pharma Companies generate Franchise queries and Boast Business?

We are having a range of more than 130 products in dermatology . We are looking for franchisee offer all over India.
We are already giving advert. in ———- newspaper. Suggest other newspaper which are having ample of distribution . South is good for marketing. Can you suggest any paper there?
What is best in Digital marketing ? Agencies experience is not good.


Advertisement is essential tool for getting franchise query but accurate & useful advertisement tool is essential for getting maximum benefits. Instead of giving ads in others news papers and online portals, you should think about promoting own company through your website, blog, facebook, youtube videos, twitter and other means. These promotional activities is not only applicable to derma franchise but for all franchise companies. At present online query generation is useful tool for business development. Online promotion will be better medium for query generation as compare to medical news papers. Medical news papers covers mostly retailers, distributors and c&f only. In some cases, doctors or hospitals. But they are not targeted audience for us. Our targeted audience is marketing & sales professionals like medical representative, asm, rsm, zsm etc. They are potential customer types who build company reputation along with providing sales. They don’t prefer much about medical news paper advertisements. Even if anyone show interest in paper advertisement, he will check company’s online reputation.
All sales professionals are used to with internet. They send their reporting and other activities details online to company. There is much more chances he will search online for franchise company. For creating online presence, you have to make a plan.
You need to make two plans:One Short Term Plan and second one is Long Term Plan.


What we are going to explain come under Digital Marketing? These plans will cover all over India includes South India.

Short term plan is executed to get paid queries by means of advertisement online through Google Ads and other online portals. These will provide quick queries for follow-up by your staff and maturing ratio is also good if you or your staff take regular follow-up to queries. One of the best way to implement short term plan is to promote through Google Ads. Google Ads is Google’s Advertising business. It is easy to use and you don’t need to hire any agency or person for it. You or your staff can do it by yourself. Read in detail about Doing promotional through Google Ads and Knowing more about Google Ads by clicking here .

Through Google Ads, you can get good number of queries based upon your budget. You can also use promotion through other online portals by giving advertisement to them but we will recommend first start with Google Ads. We are sure if you will use it properly, money that you will spend, give you good return.

In long term plan, your prime focus should be at promoting your website at good ranks at search engines like google, yahoo, bing etc. Along with website promotion, build a healthy and good reputation at social networks like Facebook, twitter, Linkedin, you tube etc. We have to make a short term plan along with this because these types of promotion takes time to show results. Results can take time to show as long as one year or more, till then we need queries for business promotion. We are providing few links below that will help you in your long term strategy.

1. How to get Good Ranking at Search Engines like Google, Yahoo, Bing etc?

2. What is content marketing and how it can help Pharma Company to boast sales?

3. Importance of Website Building and Promotion in pcd company

4. Important tools for Business Generation in Pharma Franchise Marketing

5. How to find Pcd/Franchise Distributors in Pharma Sector?

Hope Above information is useful to you…

For any query and suggestion, mail us at

Best area to start Pharma Franchise Marketing

This is to inform you that I am having an experience of 15 years of pharma sales in top companies like zydus cadila, intas, unichem, emcure, alkem from medical representative to managerial level in Rajasthan, Uttar pradesh and 6 months of tamil nadu and deal with gynecology , Orthopedic, General segment , cardiac, diabetic, oncology ,opthalmic but major is with gynecology section at uttar pradesh since last 10 years and 5 years of medical representative at Rajasthan.
I am a native of Rajasthan and have no relative in Agra uttar pradesh but having good relation with gynecologists. Now I am — years and planning to start my franchise work so as to reduce burden and traveling.
kindly guide me shall I start at Agra or at Rajasthan Pali Marwar as I belongs to that place and having son studying at Agra and I am rented. From future prospectus view, kindly guide me on this.
I will be really thankful to you for your right suggestion.


From business prospective, you should start from area where you have stronger relationship with gynecologists whether it is Agra or Rajasthan. Your first concentration should be at establishing your own franchise marketing. If you have stronger contacts in Agra then you can start from Agra. Once you will have established your market in Agra, you can proceed or expand your business in your Native Land and leave a medical representative in Agra then.

Start is most crucial thing. First you should concentrate at your strongest zone but don’t let down your links at your native area. Select area with highest potential for you regardless of your native land or not.

More related articles:

How to set-up franchise Marketing?

How to calculate profit margin in Franchise Marketing?

How to calculate Price to Stockist and Price to Retailer?

Hope above information is helpful to you…
For any query and suggestion, mail us at

How to Find Pcd Distributors?


I have recently joined a company which is into manufacturing a range of unique ingredients (nutraceuticals mainly) which include unique Probiotics that are patented, naturally derived Vitamin K2-7, unique dermatology range of products, oral health products etc. Most of these products are innovative and for the first time in India.I would like to explore the PCD pharma path to sell my products. The company will be ready to offer the ingredients in a formulation (syrup/tablets/capsules/gel/cream/lotion etc) as a ready to market product with a brand name or without. Many unique products are in the pipeline.

I need your valuable guidance to proceed in this matter.

Looking forward to hear from you soon.

Read our below linked article to get complete knowledge how you can proceed to appoint pcd distributors for your company. In this article, we have covered method to find out franchise, pcd and third party clients:

How to Find Pcd Distributors? by clicking here

Hope this information will be useful to you…
For any query and suggestion, mail us at

What are the requirements & common terms and conditions by top pharma companies for franchise distributors?

What are the requirements & common terms and conditions by top pharma companies for franchise distributors?


Requirements are:

These requirements can be fulfilled by your self or by appointing distributors.

Term and conditions for Franchisee’s sent by Companies:

1. Rates
  • WE reserve the right to change the MRP/Packaging/Net Rates etc. without any prior notice (Only Unavoidable Circumstances)
  • This price list supersedes all our previous price list.
  • Please confirm the net rates/MRP/Packing etc. before placing the order.

2. Order

  • Order must be sent to us in written by courier/email/sms.
  • If you have email Id we will send you Proforma invoice by email and you can check all the details at your end and confirm to us. Then we will raise the invoice.

3. Payment

  • Amount of invoice value should be deposited in our account then we will dispatch the goods through courier/transport of your choice on the same day.

4. Sales Condition

  • Goods once sold will not be taken back in any condition except quality complaints. (No Breakage and Expiry will be Entertained)

5. Area/Target

  • We will appoint franchisee to whom they commit us minimum business per month district. Area of operation and business will be decided as mutual discussion. Franchisee shall not be sold our products in unallocated areas.

6. Dispatch

  • Rates are our ex. Godown . Freight will be paid by franchisee.
  • If any charges towards freight/Courier/Post Parcel paid by us the same will be charged in the invoice.

Hope above information are helpful to you…
For any query and suggestion, mail us at

Is form C mandatory for Franchise Distribution

Is form C mandatory to become a distributor for a franchisee company? if yes than what is the procedure to obtain the same. and what is the cost of obtaining the same

Form C is not mandatory to become franchise distributor. Form C is related to Sale tax and used for tax benefits in inter state sale.
For example, if you purchase from haryana, tax will be 5.25% without Form C and 2% with Form C.
If you want to obtain Form C, then you have to consult your accountant or CA..

Hope this information will be helpful to you…

For any query and suggestion, mail us at