I want to do pharma franchise business

Query:

Sir I want to do pharma franchise business in my state but all companies net rates are same. In other states doctors don’t take commission to prescribe but in my state doctors take 40 to 50 percentage to prescribe. I get very low margin. I searched lot but find no solution. Please help me….

Response :

Can you give me idea how much rate you need to do business so I can get best rates from companies. Like expected rates and mrp for cefpodoxime 200 tab or cefixime 200 tab etc. Products at which you want to do work, send me detail with expected net rates and mrp. I will try to give you idea, whether you can get the expected rates or not.

Or you can do one more thing, you can bargain with companies regarding rates. Tell them you can purchase only at these expected rates. And at these rates you can deal with them. Bargaining in rate may help you. Proposed price list that is sent by companies is general rate lists, you can negotiate in rates. Rates also depend upon sale and targets. If you can give good sale then companies can provide you best possible rates or scheme, in some cases rates or free goods may be less than 20% lower than proposed rates.

If you don’t get help in bargaining. One more way to solve your problem, you can sell products at high mrp. In areas where doctors take high commission, they always prescribe products of high mrp. Ask doctor frankly about mrp of products, they surely prescribe your products with high mrp because at high mrp they will also get high amount. Companies can change mrp as per your need in slightly higher quantity. In that case you have to invest more amount at purchase because company will send you whole batch of your mrp.

You check company list, Bargain with rates as possible you get down products rate. Then consider mrp of products and choose which products you can sell at regular mrp and those products at which you need to increase mrp. Products that you can sell at regular mrp, first promote them. These products will provide the start to you. Select products that require moderation at mrp. Calculate at which mrp you can work properly with good margin.

Recommendation: Don’t try to get prescribed your product at commission basis. This may help you in starting and making short term profit but it will hurt your and company reputation in eyes of doctor and other professionals. For long term, you should do purely ethical and branded work. Doctor will surely prescribe your drug if you will do hard work and your products have good efficacy. This come under bribe. Medical Association of India has been banned all types of tour, gift, sponsored packages, money or any other article or services etc. Doctor may loose his registration if found indulge in this type of activity. You should try to maintain your and your marketing company reputation if you want to stay long in market.

Read below articles these may also help you in pharma franchise marketing…

• How to calculate Maximum Retail Price, price to retailer and price to stockist with any MRP?
• Key Points that should be considered while starting pharma Franchisee Company
• Steps for starting Pharma Franchisee Marketing!!!!!!
• Things that should be considered before starting pharma franchisee business
• Which Pharma Franchisee Company (PFC) or PCD Company will be best for association? What to do before finalized your PCD or Franchisee Company?

Hope you found it helpful…