In this article I will tell you about the Pharma Franchise Model and how it is different from other franchise models. Along with Pharma Franchise, I will drop you some basic knowledge about the entire franchise model. Franchise marketing meaning varies from industry to industry. A franchise is a model of distribution and represents the most common business structure that enables the franchisor to capture recurring business from their franchisees. The franchisees are then able to earn profits from the same set of rules, systems and standardized products sold by other franchises across the country. In today's world of marketing, franchising has emerged as a lucrative option for new ventures as it simplifies and streamline the process of starting a business. With so much advanced equipment, efficient manpower, trained professionals etc., many entrepreneurs find it financially rewarding to take up a franchise business. What is Franchising? Franchising is a business strategy that involv
Query:
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 a big deal.
Second, most e-pharmacy players have huge consumption and they can directly purchase from the company or their depot.
Third, in the online space, there are huge investments generated and e-commerce portals work even in loss for competing with other players and offline stores. Sometimes they bear losses to capture the market place and create branding to generate more investment or sell their venture at huge valuation.
If you want to open a pharmacy shop then follow the link: How to open a pharmacy shop?
Giving 15-20% discount will not be an issue for the majority of products in the retail sector.
There are very less chances for buying medicines directly from MNC companies at retail level as you will have very less quantity for each product and you have to maintain a range of different brands and molecules that make it impractical to purchase one box or 5 pieces of a product directly from different different companies.
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?
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 a big deal.
Second, most e-pharmacy players have huge consumption and they can directly purchase from the company or their depot.
Third, in the online space, there are huge investments generated and e-commerce portals work even in loss for competing with other players and offline stores. Sometimes they bear losses to capture the market place and create branding to generate more investment or sell their venture at huge valuation.
If you want to open a pharmacy shop then follow the link: How to open a pharmacy shop?
Giving 15-20% discount will not be an issue for the majority of products in the retail sector.
There are very less chances for buying medicines directly from MNC companies at retail level as you will have very less quantity for each product and you have to maintain a range of different brands and molecules that make it impractical to purchase one box or 5 pieces of a product directly from different different companies.
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