Skip to main content

What is difference between Pharma Franchise and Pharma Distribution?

In One line we can differentiate Pharma Franchise and Pharma Distribution - A pharma distributor only redistributes products of a pharma company in an allocated area to retailers, Nursing homes, hospitals, Pharmacies whereas a Franchise apart from redistribution also promotes ethically or otherwise the said products to the medical fraternity for prescriptions or OTC promotion.

Check out article link to know more about How to contact with the medicine company for franchises? here

In detail Pharma Distribution and Pharma Franchise Difference:

In pharmaceutical distribution, Pharma company appoints own medical representatives and sell products through own sales team. Pharma company bill to distributor at price to stockist rate and pharmaceutical distributor has a particular margin like 8%, 10%, 12% etc, and distribute products to pharmaceutical retailers (pharmacies and chemists) by receiving orders from pharma company’s sales team. Pharmaceutical distributor must have wholesale drug license.

In pharma distribution, pharma company don't provide any exclusive rights and monopoly rights. Company assign a particular area to distribute products. Some time distributor from other area can supply material in their areas.

In Pharma Franchise, Pharma company don't provide medical representatives or sales team. Pharma Franchise distributor either appoint its own sales team or do marketing by own. Pharma company provides products at net rates, not price to stockist. Pharma Franchisee has to market and promote product and get order from market.

Net rate is the rate which is provided by pharma company without adding any promotional and sales expenses i.e. manufacturing cost plus profit margin. Difference between net rates and price to stockist is the margin which is got by pharma franchise distributor from which he/she will manage marketing expenses, sales team expenses and salary, own profit etc.

Pharma Franchise doesn’t always need to be a wholesale drug license. They can appoint a distributor having wholesale drug license and start working as pharma franchise.

In Pharma Franchise, Company provides monopoly and exclusive rights so no other distributor can supply product in their area as its franchise hard work that are generating sale in that territory.

Other than differences, pharmaceutical distribution and pharma franchise has certain things in common like both are related to distribution of drugs. In pharma distribution, only supply of medicines and collection of payments is most important work whereas in pharma franchise, marketing and promotion of products is most important work along with supply of medicines and payment collection.

Hope above information is helpful to you...
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Keywords: pcd pharma franchise, pcd distributors, pcd pharma companies price list, pcd pharma business model, pcd pharma profit, pcd pharma Wikipedia, pcd company means

Comments

Ayurvedic Medicine Company

Send Distribution/Franchise Query

Name

Email *

Message *

Register your business at

Find pharmaceutical, cosmetics, nutraceutical, ayurveda and alternative medicine's distributors, franchise, suppliers query for free.

If you want to take distribution, franchise or associates with any pharmaceutical, cosmetic or ayush company then you can find it here...

Popular posts from this blog

Schedule F, F1, F2, F3, FF

Schedules:  Schedule A ,  Schedule B ,  Schedule C ,  Schedule D ,  Schedule E1 ,  Schedule F ,  Schedule G ,  Schedule H ,  Schedule H1 , Schedule I,  Schedule J ,  Schedule K ,  Schedule L1 ,  Schedule M ,  Schedule M1 ,  Schedule M2 ,  Schedule M3 ,  Schedule N ,  Schedule O ,  Schedule P ,  Schedule Q ,  Schedule R ,  Schedule S ,  Schedule T ,  Schedule U ,  Schedule V , Schedule W,  Schedule X ,  Schedule Y Schedule F: Schedule F (Rule 78 and Part X) describes requirements related to Blood and Blood Components. We are describing general heading about schedule. This will give you Idea about schedule structure and matter. Part XIIB: Requirements for the functioning and operation of a blood bank and / or for preparation of blood components. I. This section describes details about Blood Bank and Blood Components General Accommodatio...

What are the Schedules under Drug and Cosmetic Act, 1940 & Rules 1945?

Schedules are the set of provisions for classifications of drugs, forms, fees, standards, requirements and regulations related to pharmaceutical, Ayurvedic (including siddha), unani and tibb system of medicines, homeopathy, blood and realted products etc under Drug and Cosmetic Act, 1940 and Rules, 1945. The schedule to the drugs and cosmetics act are Schedule A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y. Drug and cosmetic rules are divided into schedules alphabetically and named also alphabetically like Schedule A, Schedule B etc till Schedule Y. The schedules to the drugs and cosmetics act are important part. Every schedule contains specific information as discussed below. Schedule A:  Schedule A  describes application forms and licenses types. Download Schedule A Pdf Schedule B:  Schedule B  describes Fees for test or analysis by the Central Drugs Laboratories or State Drugs Laboratories. Download Schedule B Pdf Schedule B1: Sch...

What is the Difference between Third Party Manufacturing, Contract Manufacturing and Loan License Manufacturing?

Third party manufacturing, contract manufacturing and loan licensing, all are the terms for manufacturing own pharmaceutical brands without owing a pharmaceutical manufacturing unit. With help of these three, one can easily set-up own pharmaceutical company without investing at manufacturing facility. In this article, we will checkout difference between these three. First two are similar in many aspects and used as synonyms many times for each other in general talking but have technical difference. Loan licensing is totally different from these terms. First we will understand difference between third party manufacturing and contract manufacturing .   Third party manufacturing and contract manufacturing, both are the ways to get manufacturing own brand name products from manufacturing company with or without involvement of manufacturing process. Responsibility of manufacturing process is of manufacturer but marketing company may involve in procurement of material required...