How to calculate Profit Margin, Net Rates, Trade Rates, Price List in Pharma franchise Marketing?

We hope if you have visited this page, you have Decided to start pharma/ayurvedic franchise/pcd marketing Before start you want to know- how much you can earn through pcd pharma and franchise marketing. Unlike other business, this business don’t have fixed percentage margin. How can you earn from it depend at your selling skill.

Here we are going to present rough estimate of your total percentage margin.
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PCD Pharma Franchise Companies have simple calculation to finalize their net rates and MRP’s. Most of franchisee and PCD companies finalized their net rates and MRP’s, according to market conditions, and according to their competitors.

Raw material cost is basis of net rate calculation. Pharma Franchise or PCD companies provide medicines to their franchisee, at net price basis.Net Prices are calculated by following formulas:
Total Cost = Manufacturing cost + Packing Material Cost + Taxes + Transportation + Promotion Material + Expenses.
Net Rate = Total cost X percentage of margin.
Percentage of margin may differ from companies to companies. Percentage of margin is calculated according to number of employees, administration expenses and other expenses of company. Pharma franchise or PCD Companies provide visual aids, catch covers, leaf behind cards, bags, writing pads, dairies, calendars, pens and number of promotion inputs. That’s way their prices are higher than generic drugs. And doesn’t do direct marketing, hence, prices fall below branded drugs.Companies have calculated their rates at which they will sell to their customers. Then their franchisee’s turn to fix their margin according to their cost and expenses. Transportation between companies to party also causes expenses hence we will calculate this expense into franchise distributor costing.Suppose if a Franchisee Distributor purchase a particular medicine at the rate of 10 Rs with a MRP’s of 35 Rs and after include with transportation and tax, it will be increased by 10% and become 11 Rs.

How will he calculate distributions of margins?
20% margin with scheme (10% of free goods or whatever applicable) will go to retailer, even more in some cases. After giving 20% + scheme to retailer, a sum of approximately 8 Rs. will be deducted in MRP. Now value left to 27 Rs.
Trade price for the drug will be 70% of MRP i.e. 24.50/-.This is price that is supposed to be at which Pharma franchisee Distributor will provide drugs to the wholesaler but it is not actual. We consider it standard and use it to find profit margin.

So, Stockiest Margin = Retailer Price – Trade Rate (i.e. 27-24.5 = 2.5 Rs, Nearly 10% of Trade rate)

Now 13.50 Rs left in the hand of Pharma franchisee Distributor. His marketing cost (promotion inputs or commission, small gifts, tours, functions etc.) will be approximately 25 to 30 % of total MRP and this amount will be nearly 8.75 to 10.5 Rs. Total margin of Pharma franchisee Distributor will be 4.75 to 3 Rs and that is equal to 43% to 25 %. In this margin, franchisee salary, travelling expenses, medical representative expenses etc. At purchase of 11/-, you can earn minimum of 3/- as gross profit.


Download profit margin price list by clicking here

Example Price List Format:

Net Rate
Trade Rate

Market factors or type of products also make impact at MRP and Net Rate. Companies also provide free goods or offer in product list. How offer or free goods create impact at your margin read here

That margin is not enough if we will calculate difficulty and competition in market. That Calculation was based upon upon general calculations, you can’t calculate price to retailer or price to stockist from it. It is general calculation for calculating roughly profit margin. If someone finds it incorrect, he can make amendment in it and advice me to correct it. I will be apologized for any mistake.

But one thing, I want to make clear for Pharma Franchise Companies, they should respect their franchise because they do most of hard work to sell your product and gets minimum margin to fulfill their life.

Confuse about how to calculate Price to retailer/Price to Stockist, Read here

You can ask for price list of Pharma pcd Franchise company by mail from us. Send your query for product cum price list at

We can provide you free of cost Pharma Franchise consultant to PharmaDistributors and Marketing professionals want to start his own marketing. You can mail me for your question and problems at or through contact box…

Hope above information is helpful to you…

Hope for best…

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Keywords: Pharma franchise in India, PCD companies in India, Requirement for Pharma Franchise, How to Start Pharma Franchise, pcd companies price list, pharma companies profit margin

Top Reasons Why Pharma Franchise Companies are backbone of Pharmaceutical Market?

Pharma Franchise and PCD concept is hot cake in pharmaceutical sector. From last few years, it become popular selling technique for pharma companies. Here we are going to discuss about few reasons why Franchise companies are back bone for pharmaceutical sector:

  1. Break Monopoly of Companies: Franchise companies break the monopoly of big pharma companies. Big pharma companies are occupied with resources and ability to beat the competition but small companies don’t have much resources and investments to compete with big pharma. Franchise concept give small companies an option for building competition with big pharma by appointing local franchisee having good relationship with local health care professionals.
  2. Create Space for new comers: In pharmaceutical sector, entry of new professionals are very difficult. Competition with established distributors/wholesalers, retailers and other professionals is much difficult for new comers to establish own distribution and trading work in pharmaceutical sector. Big pharma look for big distributors and establish distributors when it comes for providing distribution ship. Security amount and many other conditions make it more complex and out of reach of new professionals. Franchise companies provides easy opportunities to get stockistship and distribution at easy terms.
  3. Create new option: As number of companies increasing, options are also increasing in market. That indirectly pressurize big pharma to give more discounts and innovation to keep presence in pharma market. Doctors also get more options in prescribing any particular molecule.
  4. Prevent Shortage of Life Saving Drugs: In case of any Government policy, big pharma companies try to pressurize Government by not supplying life saving medicines in market. In that case small companies sale may boast up and keep availability of life saving drugs in market. With franchise model, it will become to timely delivery of life saving drugs to patients.
General Discussion:

When I started my career as a medical representative, I always heard about propaganda companies. Representatives of these companies were different from us. Their method of working was different, their approach was different.

For being working for a multinational firm, I thought that these companies drug was of low standards. I were not aware how propaganda companies work. In my 6 month medical representative career, everyday in field I encountered with them. I assume that what my thinking was at that time about propaganda cum distribution companies (PCD inshort) — most of sales professional have same kind of mind set about PCD’s.Competition always provides profit to consumers.
The Indian Pharmaceutical market expected estimated size will be US $55 billion at the rate of 23.9% by 2020. If we consider Google search data — can anyone tell, how many times PCD orPharma Franchise Companies searches through out Google per month.But in reality PCD companies are backbone for the future of Indian pharmaceutical market. Imagine, if only 100 companies cover-up whole Indian market and mostly foreign pharma giants. Their monopoly of market may cause decrease in competition, increase in price, shortage of life saving drugs and also non stoppable acts.

See the example of Telecom sector, due to non competition, they are increasing prices without any notification. During my professional worked period for Pharma Franchise Company, I really appreciate this concept — for being one of market changing process.

Now question arises — how can we say PCD companies — backbone of Indian Pharmaceutical market. Professionals that are associated with these companies know exactly the important of PCD companies.

Average Google monthly search for PCD Pharma companies, PCD companies in India and similar keywords are about 4880 per month, searches for Indian PCD companies, Indian pharma PCD’s & similar are about 2000 per month. Like wise Indian Pharma franchise companies, Pharma Franchise is about 5000 per month. If we calculate roughly — that searches throughout India –are more than 20000 per month.

For confirmation you can check Google Keyword Planner data where you can get all keyword searches results.Professionals who are asking for future of Pharma PCD or Pharma Franchise can find the scope in near future. Direct marketing companies or in other sense ethical companies provides that scope for PCD or Pharma Franchise.

Let take a look at it :Every year these companies trained a large number of medical representatives. In this force, professionals that are dedicated to their work, builds a strong relationship with healthcare professionals.

At some stage in their life when they think about their own work. Pharma Franchise Marketing is best possible way in front of them.

Easy to start, consumes very less investment and same time it is very profitable business.

I can’t suppose pharmaceutical market without pharma franchise because it is the only way to prevent market for being monopolized by few big houses.

On other hand Pharma franchise or PCD has strong hand in building competition and helps to provide affordable medicine by MNC’s.Hope you have found this interesting…

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Top Ten Failure reasons in Pharma Franchise Marketing?

In my daily working life, I always realize Pcd Pharma Franchise companies have huge scope to capture market and beat competition with Direct Marketing Companies. Few things — that can make the difference for these companies. Firstly we have to study — what are the mistakes that are commonly doing by Pharma Franchise Companies (PCD)?

  1. Not having Vision: Most of Pharma/Ayurvedic Franchise Companies do this mistake. They come with their sales target and expansion. But don’t have any working plan or vision — how to grow along with their associates or Franchise. Not having exact vision to expand business is major thing that are stopping from becoming big player. For most of companies vision section is restricted for website purpose only.
  2. Lack of Initiative: Pharma Franchise Companies follow same path as their competitors doing. Very few companies have capability to take initiative and do something different. For doing big, one has to thing big. Experiments and risk is necessary in business to expand.
  3. Lack of Innovation: Mostly Pharma Franchise Companies aren’t involved in research and innovation. They follow Multi-Nation companies step and their policies.
  4. Shortage of resources: Small fund and not having proper utilization of fund is also played great role. Shortage of resources and fund put Pharma Franchise Companies at setback.
  5. Unprofessional or poor services: Shortage of raw material, finished goods and not having proper or qualified staff for particular work leaves their services at lower end.
  6. Customer Satisfaction: Pharma Franchise Company’s (PCD) main customers are their Franchisee and Pharmaceutical Distributors. After few dealing most of customers find themselves not properly treated or serviced. Company’s main motive shifted to profit making only, not having satisfied customer.
  7. Not Updating: Updating itself is live saver for any business and that is also applicable for pharmaceutical sector. Most of PCD companies have products that will be in every company product list. Most of companies don’t try to update their product list. Instead they concentrate to launch their new division with same products.
  8. Saturation: Most of PCD companies are proprietor base. After achieving a goal, they start to play safe game, become saturated and try to resist the risk factors that are basis of growth.
  9. Not having Expansion Plan: Most of PCD companies don’t have their expansion plan. PCD Company’s only try to launch their divisions but don’t focus at their expansion. Having more divisions are not the criteria for any company but having Big Brand value — more matters.
  10. Work Culture: Pharma Franchise Companies (PCD) don’t have good work culture. They treat their employees as Run Machine. They don’t fulfill their employee’s requirements. That’s the main reason – for not getting loyal and faithful employees.

These are only few but essential for becoming future giants. Big Names are started with single alphabet. To do big, we have to be big. Customer is God for any business. Customer Satisfaction should be first motive for all.

Hope above article was useful to you….

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What is Pharma Franchise Business? Reasons of Popularization and Future Aspects

Pharma Franchise Business and/or PCD Business may be strange word for common people but pcd or pharma franchise is well known word for persons that are related to medicines and pharmaceutical sectors. In period of 1990’s when India begun its new era. One sector were going to change in India and that was pharmaceutical sector.
Pharma Franchise Business concept totally changed the direction of field and provided the opportunities to small Pharmaceutical companies and pharmaceutical professionals to grow and start their own work.

The word franchise is come from the Anglo-French word means “Liberty”. If we go through history of franchise – that goes before eighteenth century. In modern time new era of franchise begins in late 19th century. In every sector like auto, soft drink, food etc franchise concept is so popular. Before 1950, in USA only less than 100 companies provide the franchise. In today business it will be difficult to count the numbers.

Pharma Franchise Business Concept:

First we need to understand the Pharma Franchise Business Concept. Pharma Franchise Business Concept is worked at business agreement between two parties. Supplier and Seller.  Supplier may include Pharma Marketing Company and/or Pharmaceutical Manufacturing Company, carry and forwarding agent, distributor/wholesaler etc. Supplier may includes CNF, Distributors/Sales Professionals/Agencies, retailers etc.

Supplier procure and/or produce the product where as seller promote and sell the product. Profit margin, promotional and advertisement material, expenses etc is as per mutual agreement.

Generally product investment at stock & new products, promotional inputs and advertisement etc is taken care by supplier end whereas doctor’s expenses, market investment, sales persons expenses  etc is taken care at seller’s end.  Read in detail about Pharma Franchise Business and How it Works by Clicking here

Why franchise business concept (PCD) is popular in pharmaceutical sector? We will try to focus at the reasons and causes.
Reasons of Popularity:
Low Marketing Cost: 

That may be one of the main reason behind pharma franchise popularity. Huge marketing cost for a small pharma company matters a lot. From general manager to medical representative, foreign tour to small gifts, C&F to retailer, Pharma Company has to spend huge money and effort. Pharma Franchise concept makes this process less costly and efficient. Pharma Franchise concept helps in reduction of direct sales man power and their expenses, hence franchise companies marketing and promotion cost come done.

Low Administration Cost: 

For a Pharma/Ayurvedic franchise company less staff force for handling work. Even in case of small companies only one or two professionals can manage. Whole country’s marketing can be managed by single office.

Own work at small investment:

If you have links with doctors and passion for your own works franchise marketing is best opportunity for you. For pharma marketing professionals, pharma franchise concept is like – they are their own boss. Franchise marketing and distribution work can be started with investment as low as ten thousand rupees.


Pharma Franchise business is profitable business. A franchise distributor can earn handsome income with minimal efforts. Fifty thousand to one lakh income could be earned by a person after two years of own marketing. calculation of profit margin can be done by visiting our article: how much profit a franchise distributor can earn? Companies also earn huge profit by distributing at franchise basis.

Share of Responsibilities:
If any person has pharma sales experience but don’t have any knowledge about manufacturing, distribution channel then pharma franchise come with hope for self employment. Pharmaceutical company provides the product and franchise sell it further. Franchise is work of share responsibility, companies are to provide products and promotional whereas franchise distributors work is to promote and get prescription by doctors. It divides responsibilities without affecting the cost of model.
Simple Distribution Channel:

Pharma Franchise model works at simple distribution channel. Products could be distributed by appointing a c&f or directly to distributors. It doesn’t require expertise in developing distribution channel. A average knowledge person can easily set-up distribution channel all over country.

Easy Availability:
Last not least, easy availability of franchise companies and franchise distributors/marketing persons make it easy for taking this concept at further level. Companies can easily find out distributors through promoting its company (Read how to find franchise distributors here?) and distributors can easily find out franchise companies detail through Internet, drug books and medical news papers etc. list of franchise companies get here

Future of Pharma franchise:

If we talk about future of franchise in pharmaceutical sector, franchise business is growing – if we roughly say, one pharma franchise company has launched daily. But with growing pharmaceutical sector it will be not so easy for PCD’s companies to maintain their growth. Increasing strictness with new policies, DPCO, and amendments of law makes life for Franchise companies (PCD) more miserable as compared to before 2010 era.

Defaming of Pharma Franchise companies (PCD) in recent years, cut throat competition, decrease in margin, awareness about branded and generic products, awareness about manufacturing cost of drugs in public and professionals, unprofessional approach and poor services are few factors that are being faced by PCD companies.

In recent time, pharmaceutical sector are at changing state. In which side camel seat, no one knows. Pharma Franchise (PCD) business has its own pro and cons. But one thing is sure, pharma franchise is only option for small pharmaceutical companies and enterprises to compete with multi nation companies.

It’s necessity at current time to save the future of small and medium scale Indian Pharma Companies. What policy govt. make, they have to take care of small manufacturers and marketers.

Hope for a brighter and best future for Indian Pharmaceutical and Herbal Sector.

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How to Apply for A Trademark Registration?

We have studied in our previous articles about procedure and requirements to start pharmaceutical company , ayurvedic company and Food Supplement company. In this article we will discuss about trademark registration process, procedure, documents, requirements, difference between objection/opposed, advantage, FAQ and other related details.

In this article we will know about trademark registration.  Same procedure and requirement for Trademark is applied for all business including Pharmaceutical, Ayurvedic and Nutraceutical (food Supplement) Sector.

What is Trademark?

First we will know about Trademark. Trade mark is generally referred to a company name, brand/product name/service and/or logo of company and/or firm. A Trademark can be in form of visual symbol, word, numeral, name, device and/or lable etc which distinguish a business from others . For Example, Elzac Herbals along with sign is a Logo of Elzac Herbal India, An Ayurvedic Manufacturing Products Company. We can say Elzac Herbals is a Trade Mark.

If you are going to launch a company and/or a new product then it is advised to first go for trademark registration before launching.  Trademark registration is an intellectual property which protects against use of your trade/business name or trademark by others.

Trademark registration:

Trademark registration can be obtained for business name, brand name, logo, tagline or caption etc. Company Name and/or Products Brand Name can be registered under Controller General of Patents Designs and Trademarks. Trade Mark is valuable asset especially in case of pharma companies it worth more.

‘TM’ stands for ‘Trademark applied for’ where as ® symbol stands for the ‘Registered trademark’. Before apply for trade mark, Trade Mark search is highly recommended. This will give you indication of existing or applying trade marks. Go to the site. Click at trade mark and you will be redirected to Then click at public search. In new tab will be opened. Change search type to phonetic or Wordmark. Enter your brand name or company name and class. For pharmaceutical and ayurvedic product’s name and manufacturing company, you can search in Class-5 and for trading/marketing company, search in class-35.

You can apply trade mark registration through amy legal firm or trade mark advocates those handle trade mark registration for your trade mark registration. For providing authorization, you have to sign power of attorney authorizing for particular brand name/company name trade mark registration.

Requirements for filling a trademark  registration application:

  • The name, address and Nationality of applicant/s. In case of Partnership firm, Name of all Partners. Soft copy of the Trade Mark to be registered.
  • List of goods/Services for which registration is required along with Class.
  • If the mark contains or consists of non-English words, a translation of those words into English is required.
  • Power of attorney simply signed by the applicant (In case of application filled by advocate and/or legal firm/agency).
  • Fees for registration. Govt. fee is approximate 4500/- per trade mark. Fees may change with any government policy update.
  • Proof for using particular name (like Invoice, Advertisement etc.)

Process Includes:

  • Trade Name and/or Logo. If you don’t have then choose a Unique Name and/or Logo.
  • Search for Trade Mark Availability as mentioned above
  • Select appropriate class from 45 Classes. (For Pharmaceutical, Ayurvedic and Nutraceuticals generally Class 5 and Class 35 is used.)
  • Application submission for Trade Mark registration. It takes 3 working days for trade mark department to issue Trade Mark application Number but it takes 1.5-2 years for Trade Mark registration if your application don’t receive any objection other wise it may take more time.
  • Advertising a trademark in government public gadget before acceptance for trademark registration. Objections and oppositions are invited by government from public before going in registration process.
  • Hearing before registrar if your trademark faces any objection.
  • Hearing before registrar if your trademark faces opposed.

Difference between Objection and Opposed:

Objection in trademark registration is something that a particular trademark and/or similar trademark or name may have being used by someone else. Objection may be raised by trademark department internally or any third person. Means there is uncertainty about trademark whether it may cause any harm to any other trademark owner or not if trademark registration is given to you or someone else. Objection may also be raised if trademark department is uncertain whether trademark applicant is using that trademark in actuality or not.  For clearing objection, proper proof and documents have been submitted before registrar at hearing date issued by trademark department.

Opposed in trademark registration is when a third party files application against giving registration of particular trademark to you or someone else. For clearing opposition, a legal case has been fight against opposed party for taking trade mark registration.

Advantage of Trademark Registration:

Legal Protection: Trademark registration provides legal protection against using your trade name and/or mark used by any other person, company or/and firm. No can use your trademark without your prior permission.

Brand Trust: Trademark Registration separates a trademark from others. Registered Brand makes an trusted impression at customer mind set. It builds a trust between trademark owner and his customer.

Popularization: If a trademark is registered then trademark owner is free to promote it at large level without fear of misuse and/or use by any other party.

Trademark Symbols:

Three types of Symbol is used for trademark purpose: ‘TM‘, ‘SM‘ and ‘R‘.

TM: Trade Mark applied for. This symbol is used for product when it is not registered but is applied for trademark registration.

SM: Service Mark applied for. This mark is used when trademark is applied for Service/s, not for product.

R: Registered. This mark is used when a trademark has been accepted for registration and registration license has been granted to trademark owner.

Frequently Asked Question about Trademark Registration:

How many types of Classes under Trade Mark Registry?

Ans: Trademark Registry has classified Trademark classes under 45 classes according to product and service type.

In which class Pharmaceutical, Cosmetic, Ayurvedic/Herbal and Food Supplements products/Services and Companies comes?

Ans: Pharmaceutical, Ayurvedic and Nutraceutical Products and preparations fall under class 5 where as companies fall under class 35.

What is the Duration of trademark Registration Certificate Validation?

Ans: A trademark registration is granted for 10 years but trademark licensee can renew it after every 10 year and use it for indefinite period.

When a applicant use symbol ‘TM’?

Ans: After getting trade mark registration number after submitting application, applicant can use symbol ‘TM’ but he/she can’t use ‘R’ symbol unless his/her trademark is received registration certificate.

If my company is registered under Company Act, Do I still need Trademark Registration?

Ans: Company registration under Company Act doesn’t cover or protect brand identity. For example, Your registered a company under company act with name ABCD Herbal private limited. In that case another person is free to register company with name ABCD Ayurvedic Private Limited but if you have trademark registration of ABCD then no one can use  ABCD for registration of company even under Company Act because Company Act also doesn’t allow to register a company with name that is trademark registered by other person.

Can I apply for Trademark Registration by own self?

Ans: You can apply by own self at trademark registry website. You will require class III digital signature for applying trademark registration online by own self.

What to confirm before applying a trademark through Advocates and Legal firms/Agencies?

Ans: Applying for Trademark registration is not a big thing. Most of online agencies and advocates lure customers by charging 1000 applying fees plus government fees. Most of them doesn’t cover ‘Objection‘ part in it. Almost of trademarks faces objection during registration process. So before applying through any advocates or/and legal firms first confirm whether they will handle objection or not during registration process. Otherwise you have to pay more money for clearing objection from your trademark registration process.

Read Here: How much investment is required to start pharma marketing company ?