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

Query:

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?

Response:

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
MRP: M
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…
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

How to Hide Rates from Stockist in Pharma Franchise Marketing?

Query:

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.

Response:

  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.

Best area to start Pharma Franchise Marketing

Query:
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.

Response:

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 pharmafranchiseehelp@gmail.com

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

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

Response:

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 pharmafranchiseehelp@gmail.com

Is form C mandatory for Franchise Distribution

Query:
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

Response:
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 pharmafranchiseehelp@gmail.com

Can a Pharma Student get benefited with Pcd/Franchise?

Query:
I am pharma student want to start a small business… how could i get benefited with franchisee pharma pcd

Response:

Thanks for your valuable mail…For taking benefits from Franchise Pharma Pcd, you have to first get experience in pharmaceutical market. It could be good start-up business at small scale but only when you have experience at ground level in sale and marketing.

Few below articles may be helpful to you…

How to start a successful Business in Pharmaceutical Sector?

Pharmacy Education in India and Top career opportunities for Pharmacy Students

What should I do after completing my B. Pharma ? Job or Business ! Suggest Me

Hope this information will be helpful to you…

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

How much Margin does a Person get through Pcd/Franchise Distributionship

Query:
I want to start a pcd franchise. May I start it. What are it uses and how much margin will I get and what should be requirement for pcd franchise

Response:

Pharma Pcd Franchise are used to sell medicines through prescription by doctors. It is based at mutual beneficial concept. In this concept Pharma Company doesn’t need to establish a sales team where as sales persons don’t need to invest high amount in products.

About Margin, you can read at our article: How much margin you can get from pcd/franchise?

Requirements for Pcd Franchise, read at our article: How to set-up and become successful franchise distributor?

Hope this information will be helpful to you…

How to Apply for PCD Distribution?

Query:
I want to apply for PCD but, I need guidance for it.
1. How to apply?
2. Where to apply?
3. What is the fees or payment needed to pay?
Please give me guidance. thank you

Response:

You have to contact pcd companies to get pcd of a pharma company in your area. You don’t need to apply to any one. You just need to contact them. If company will not have pcd distributor in your area, company will appoint you as pcd distributor. You can place order as per your requirement and start working. Read in detail about pcd/franchise by clicking here

For pcd distribution, there is not any fees or payment. You have to pay your order’s value payment only. In above linked article, you can read complete detail about pcd distribution.

For list of pcd pharma companies click here

Hope this information will be helpful to you…

How to calculate profit margin in pharma franchise pcd?

Query:
I am planning to start a PCD very soon. I happened to read your inputs on how to start , how much to invest and how to calculate the profit. Can you please help me to calculate my net profit from the below table. Please be noted that I am appointing one or two distributors to start with and it is going to be a one man show onlyNet rate – 74.8+1.5 as Excise
PTR – 246.38
PTS – 223.98
MRP- 340.00

Response:

You didn’t mention doctors commission or any other gift policy expenses in it so we are not considering that here:

Product will cost you like:

Net: 74.8/-
Tax 1.5% = 1.12/-
Total: 75.92/-
+ Freight: As per actual transportation cost, suppose: 2/-
Now: 77.92/-
You will give to stockist at 223.98
Total Cost: 77.92/-
Your margin: 223.98-77.92 = 146.06/-

Less doctor commission etc if anyRead in detail about How to calculate profit margin in pharma franchise pcd by clicking here

Hope above information is useful to you…

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

Which one is Better between Own Marketing Company or Franchise Marketing?


Query:

At first I’d like to thank you all for your valuable information on ‘how to start a own pharmaceutical company in India‘. It was quite informative. But I want information as per my own profile and need. I’m having a experience of eight years in pharmaceutical sales and marketing with the companies like ————————— and currently working with ————————-.
Sir/Ma’m I wanna be a pharma entrepreneur and which mode would be the best for me to start with it- by registering own company or through franchises? I want to operate it in north Bihar. The Kosi region and the Tirhut region at first. Please give your valuable guidance on it. Looking forward for your kind support.

Response:

Your decision depend at your financial situation. Franchise marketing will need less investment while marketing company will require huge amount. Both has own advantage and disadvantage. We will discuss here so you can decide which one is better option for you.

  • Franchise marketing requires less investment and can be started instantly while own pharma marketing company requires more investment and take time period to start in starting.
  • In Franchise marketing, you can launch a good number of products at once without fear of much loss & expiry due to minimum quantity (i.e. 200 tab/ 500 tab etc.) as per need while in pharma marketing company, you have to get manufactured product at batch size basis. Minimum of twenty to thirty thousand tablet will be required to place order.
  • In Franchise Marketing, Franchise company brand names and company name will be promoted while in own marketing company, your own company name and brand name will be promoted.
  • In Franchise Marketing, you will not have to invest at promotional and marketing material because that’s the responsibility of company whereas in own company you will also have to invest at promotional and marketing material.
  • In franchise marketing, you can invest your whole time at promotion and marketing only, you don’t need to concentrate at procurement of products whereas in own company, you have to divest your time at procurement along with marketing.
  • In Franchise marketing, any time company can stop to supply its products or can supply to another distributor in your area whereas in marketing company, if one manufacturer refuse to manufacture, you can get manufactured your brand names from other one.
  • In Franchise marketing, you have to depend at company strategy for launching new molecules in market whereas in own company, you can launch new products depend at market demand.
  • In both cases, you will be requirement of Wholesale Drug License and GST Number

Depend at above factors, you can decide which will be better for you. We recommend you to start with franchise marketing with minimum invest. After achieving a particular stage, you start to launch your company by getting manufactured latest molecules one by one according to market demand.

Hope this information will be helpful to you…

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

Read Related Articles: