This is the conversion between three what app group members at our pharma franchise help group to find out best possible net rates percentage that can give you idea what should be the handsome net rate % as per MRP of product.
I modified or added few lines more to expand conversation and to remove short letter typed like ‘u’ to ‘you’ etc. If you find it wrong or incorrect, please write your view in comment box to help others….
Original Question:
Person 1 :What is the handsome net rate in %(percentage) that one can look for max gains in franchise marketing ?
Person 2: Net rates mostly considered as 25% of MRP but not should be same for all products
Person 2: Antibiotics are considered to be competitive products so MRP should be low and for nutraeutical products MRP can be high.
Person 3: This is not a correct answer of particular that query of person 1.
Person 1: Person 3, please answer.
Person 2: I tried to give best possible answer from my point of view if you find it incorrect please correct.
Person 3: Person 2, Actually I didn’t unserstand what exactly you want to say.
Person 3: You didn’t not understand what does he want and you has replied another answer.
Person 2: Ok…
Person 1: Person 2 has said roughly the handsome net %(percentage) overall which I wanted to know
Person 3: Don’t worry Person 2 is not that much business minded please talk to me personally.
Person 1: Because some products are available @ 12 % n some @35 % overall it comes @ 25% only more or less…
Person 2: Person 3, please share your help to all of us to send your answer in group
Person 2: Correction in answer nutraceutical products mrp can be high not net rates
GA: I will help others to share it at my website www.pharmafranchisehelp.com
Person 1: As a customer, I have prepared order for products with around 1 lakh rupees (MRP) and the net rate is around 25-26% of MRP. Is it worth ? Are to expect to still less net rate % ? Products include antibiotics, analgesics, anti gastric and nutritional supplements.
Person 3 : For you its less
Person 2: Sir start with small quantity and if you find product satisfactory increase it as per you requirement. Your order is enough. Send me your net rates at my e-mail. I send you it should less or its good.
Person 1: Starting order for few companies are 25000 and 50000 for others !! What’s sales target 500000 per annum ? What are all the benefits if we reach that target ?
Person 2: First order depend upon company policy
.. but you should not do work at target basis. Clarify before start you can’t work at target basis or associate with company having no target
Don’t forget to take monopoly rights agreement
Person 2: Or if you can fulfill target then ask to company what profit you will get after completion of target.
Person 1: OK
Person 2: Also ask them about availability of products and regular supply… otherwise you can suffer a lot in future.
Person 1: OK
What are legal complications ,if any, arising in this field and how to avoid them ?
Person 2: Not major complications at this time in this field but in future govt. can make some norms regarding franchise and marketing, can’t say.
Person 3 : Which typed norms for marketing
Nothing possible at this stage otherwise you can imagine how much pharma business loss happen to govt.
Person 2: Like we are involved in third party manufacturing and franchise marketing. There is no provision and norms includes in drug and cosmetic act.
Person 2: If anyone in group knows any thing about this matter
Please reply
Person 1: What are the certificates to look for regarding quality like ISO and FDA certificate ?
Person 2: COA certificate of analysis is mainly provided for quality purpose indicating available active ingredient in dosage form
Gmp certificate
Person 1: OK
We have to ask drug companies to provide these certificates ?
Person 2: Yes, You can ask.
Person 1: What about payment to companies cash on delivery or delivery on cash ? Companies ll say delivery on cash
Person 1: Who will be responsible for damage during transport n expiry date ?
Person 4: Expiry is the end buyer responsible and transport is insurance.
Person 4: Now days glass packing is not very much available. So rare chances of damage through transportation.
Person 1: OK
Person 1: What is tradition in recovering money from retailers,hospitals after distributing ? In Bangalore it’s usually bill shall be paid installment wise depending on sales.
Person 2: Like Bangalore, system of payment from retailers is same
Person 1: OK
Person 1: What about ——- Pharma ? I am Asking about quality. Is It not there in pharma franchisee companies.
Person 2: It is not possible for any one to comment about quality of products of any company.
Person 5: Any one has Wheat grass capsule
Person 6: I sir
Person 6: I am doing —— pharma for last 8 years. Its very excellent quality& good packing. Also Good support is provide by company.
Person 1: At least negative reviews should not be there for any product !!!! If not positive
Person 6: Sir i think if any one has undergone personal bad experience about quality of particular company ( not forwarded or others experience ). He must share with other group member.its a kind of great help
Person 1: What free schemes to expect from Manufacturers ?
Person 3: Manufacturers do not give free scheme only strict net rates sir.
Person 1: Average net rate for products used for general practice.
Person 3: Yes of course
Person 6: Very product net rate is different for MRP
Person 3: Net rates are not co-related to MRP as net rates are fixed according to our manufacturing cost then add margin but some persons are not able to get genuine manufacturing rates and get products with higher rates so said parties rates are higher but its not like that.
Person 3: Everybody selling amoxy and pot. clave tabs/caps and dry syrup but ask them to give analysis results from how much you are getting amoxy 105 % and potassium clavulanate 110 % as its a standard in pharmacopoeia.
Person 1: Person 2, I am sending price list of ………………… These companies to you. Give me your suggestion which company I should select for franchise marketing.
Person2: Ok Sir, Send it to my e-mail ID.
Calculate you Price to retailer and Price to stockist here…