Skip to main content

How e-pharmacies would able to give 18-20% discount to customers?

Query: First of all, a big thanks for your work. Pharmaceutical industry looks like complex web for a common people but due to your blog it is easy for us to understand this whole industry. Now coming to my question, I want to know if total margin for retailers in this industry is 18-20% then how netmeds, pharmeasy and other online players are giving 25% discount? And what steps we have to take if we want to open pharmacy shop and want to give 15-20% discount. Can a retailer buy medicines directly from company or c&f and cutting margin of distributor/Wholesaler? Response: Online players give discounts upto 18-20% or something like that. Not at all products they give exact margins. In the pharmaceutical industry , Only few brands give less margin, most brands give good margin plus schemes etc, even to offline retailers. If we talk about generic and other products there are huge discounts like product cost is 30 rs and mrp is 100 rs. So, an 25% discount in the pharma market is not

Know About Pharmaceutical Company and What a Franchisee Distributor Wants?

Chapter 2: Know About Pharmaceutical Company and What a Franchisee Distributor Wants?

In previous chapter, we have discussed in detail about What is Pharma Franchise? Pharma Franchise Model, Benefits, Profitability Ratio (Profit Margins) etc. Now pharma franchise marketing and concept is clear. We can forward to next step i.e. to know about pharmaceutical company; we are working.

Knowing about company, we are working or giving or taking franchise is one of the most important things to clear all doubt arising during conversion with prospect. Here prospect means person who are interested in taking pharmaceutical company franchise or we are making cold calls to convince him/her to associate with us as a franchisee.

As much as we have knowledge about pharma company, its products, strengths, weaknesses, competitions etc and what a prospect wants. We can handle him/her with more confident and clarify all his doubts.

What we should know about our pharmaceutical company and Franchisee Distributors?

We know about Company name, how old it is, how much products it has, all product’s names, director’s name and likewise. But do we know some technical aspects about our company that can differentiate between associating a franchisee partner with you or not.

First most important thing, we need to know, not every query we receive; don’t convert into business. But that it’s up to us how many queries we can convert into business i.e. franchisee distributors.

Finalization of a franchisee distributor is generally not dependent at company level but it’s at franchisee’s level. What type of product range he/she wants? Which specialization of doctor’s he has worked during his/her professional life. He/she is looking for products or prices. There are many more factors at which finalization of franchisee partner depends

Every franchisee query has a break through point. Some wants only products they are looking for; some are looking for rates and want to negotiates as much they can. That’s up to us how we recognize prospect’s prospective and act accordingly within company’s term & conditions and policies.

There are huge number of pharma franchise companies available. A person can easily find out a large list of companies by searching through search engines like google, bing etc. It makes it more difficult to convert a query into a franchisee. But when we understand things properly and confident about what we are offering, makes lot of difference. So, we should know as much as possible about our company and what a franchisee distributor wants.

Few things that we should know about our pharmaceutical company are:

  • Complete knowledge of Company Policies like Payment terms, rates are negotiable or not, offers, rates are inclusive of gst or not, freight will be borne by which party etc
  • Which type of product range company has – General, speciality (like paediatric, derma, psychiatric, antihypertensive, diabetic etc)?
  • Segment in which company has strong hold and its highest selling products?
  • Details about products that are in pipeline and launching soon
  • Area that are covered and areas that are vacant.
  • What different types of packaging available?
  • Which items are unique with company that are available with very few companies?

Few things that we should know or try to know about prospect are:

  • What prospect is looking for products or prices? Some franchisee distributors are need of certain products and hurry to finalize deals for procuring what they need. But some prospects have lot of offers and want to negotiates rates with companies to find out better deal.
  • Professional background and experience of prospect like having pharmaceutical distribution business or medical representative or pharma sales experience or not
  • When prospect is going to start business- in near future or just planning to start?
  • Is prospect already working with pharma franchise companies or he/she is new in business?
  • Sales turnover if prospect already associated with other pharma franchise companies

Having knowledge in sales can be game changer. So, you need to regularly update your knowledge about own pharma company, sales techniques, human psychology etc.

Throughout this course, we will learn more about pharmaceutical industry, identification of prospects, approaching technique to customers and much more.

Head on to our next chapter, which is “Know about Pharmaceutical Industry and Pharma Terminology”

Next: Chapter 3: Know About Pharmaceutical Industry and Pharma Terminology


Comments

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

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 drugs and cosmetics under Drug and Cosmetic Act, 1940 and Rules, 1945. Here drugs includes pharmaceutical, Ayurvedic (including siddha), unani and tibb system of medicines, homeopathy etc. Schedules are divided alphabetically and named also alphabetically like Schedule A, Schedule B etc till Schedule Y. Schedule Z is proposed  but not implemented yet. Schedules are important part of Drug and Cosmetic Act 1940 & Rules, 1945 . Every schedule contains specific information as discussed below. Schedule A:  Schedule A  describes application forms and licenses types. Schedule B:  Schedule B  describes Fees for test or analysis by the Central Drugs Laboratories or State Drugs Laboratories Schedule B1: Schedule B1 describes fees for the test or analysis by the pharmacopoeial laboratory for indian medicine (plim) or the government analyst Schedule C: 

State Pharmacy Council, Its Constitution and Composition and Functions

State Pharmacy Council: State Pharmacy Council is constituted as per the Pharmacy Act, 1948 & State Pharmacy Rules, 1951. State Pharmacy Council is an authoritative council to regulate Pharmacy Act, 1948 & State Pharmacy Rules, 1951. State Pharmacy Council means a State Council of Pharmacy constituted under section 19, and includes a Joint State Council of Pharmacy constituted in accordance with an agreement under section 20 under the Pharmacy Act, 1948 & State Pharmacy Rules, 1951. State Pharmacy Council work under Pharmacy council of india . The State Pharmacy Council consists of the following: (i) Six members, elected from amongst themselves by registered pharmacists (ii) Five members, of whom three are persons possessing a prescribed degree or diploma in pharmacy or pharmaceutical chemistry or registered pharmacist, nominated by State Government (iii) One member, elected from amongst themselves by the members o

Schedule T: Good manufacturing practices for ayurvedic, siddha and unani medicines

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 T (Rule 157): Schedule T describes the good manufacturing practices for ayurvedic, siddha and unani medicines The Good Manufacturing Practices (GMP) are prescribed as follows in Part I and Part II to ensure that: Raw materials used in the manufacture of drugs are authentic, of prescribed quality and are free from contamination. The manufacturing process is as has been prescribed to maintain the standards. Adequate quality control measures are adopted. The manufactured drug which is released for sale is of acceptable quality. To achieve the objectives