Franchise - a term that is granted by a government/organization/company to a particular person or a group that permits them to carry out a specific activity. For instance, selling a company's products or marketing them.
Similarly, Pharma franchise/PCD (Propaganda cum distributors) works as an authorization that is granted by a pharmaceutical manufacturer or company to an individual distributor or a group of distributors, that permits them to sell the company's products, brand name, trademark, and all the other commercial activities. It is also called PCD marketing.
These individuals or groups sell the company's brand name, products on behalf of the company.
Procedure to get a franchise of a Pharmaceutical company
The terms and conditions and policies change with the company for giving out franchisees to people or groups.
A few basic steps to get a franchise of the company is:
- Choose the product you want to market
- Select the company whose franchise you wish to get.
- Send a query regarding pcd pharma franchise to the company through an email or a phone call. Phone calls are preferable as the response is quicker.
- If they have a vacancy for the area you are selling in. If yes, ask the company to send in the product details including the price.
- Finalize the best franchise for yourself.
- Come to a marketing agreement with the company and sign the required documents.
- Start working for them by selling their product.
Please note, these are some basic steps. The procedure is different for every company therefore, this is not the only procedure.
There is another simpler way for getting a franchise of a pharmaceutical company:
- Visit the website pharma franchise.club
- Post your requirements on this website.
- Once your requirements are verified, they will be sent to the right suppliers.
- Once the suppliers find you suitable, they will contact you directly.
This is a much easier way to contact the right company. Make sure you verify the company that contacts you for the franchise, before any further process.
Important documents required for Pharma Franchise
Not a lot of documents are required for getting the Pharma franchise. There are mainly two important documents you will need -
- Wholesale Drug License number
- GST registration number
The two documents are more than enough to get a franchise of a pharmaceutical company.
How does the PCD/Pharma franchise work?
The pharma franchise business is not as complex as it seems. A pharmaceutical company appoints an individual or a group as their distributor and asks them to sell their products under their name.
The manufacturing cost remains the same for both - ethical drugs and franchise drugs. When the company focuses on ethical marketing, the company has to bear all the expenses from marketing to distribution, and the employee's expenses too. So, while deciding the price of the product, all these expenses are added, including the profit margin, and then the MRP is printed.
But in PCD marketing, pharmaceutical companies have little to no marketing cost because they don't do the marketing. The only responsibility these companies have is to manufacture the products according to the franchisee's satisfaction. The profit margin is added to the manufacturing cost (called the Net rates). Sales and marketing expenses are added by franchisees or distributors.
People who sell the products of pharmaceutical companies and do their marketing are called Pharma Franchisee partners. Companies provide the medicines to these distributors at the Net rate and research distributors further sell it at MRP, stockist rate, or trade rate after figuring out their profit. This whole process is like a partnership in a business between the two parties.
When should you take up a Pharma franchise?
If a company gives you the Pharma franchise/PCD, then you need to give them profits and in return, they will keep on increasing their franchise with you.
Therefore, take up Pharma Franchise only when you think you have good relations in the market. Since being a franchisee of a company, they look up to you for marketing. The more the marketing, the more the sales, and the more the profits for both.
So if you think you have good relations in the market and a strong command over it, then you should go for a Pharma franchise as it will help you to decrease the investment cost.
Some Common Problems to take Pharma Franchise
Once you enter into franchise marketing, there are some common problems that you might have to face. When a company gives you its franchise, there is a whole responsibility on you to market a new company in a particular area.
This is where the problem lies. No one knows about the company or the product and you are the company's representative. You need to establish their product and their brand, as well as, win people's trust. You can only overcome this challenge if you have good control over the market and your marketing strategy is good.
Certain precautions you need to take
There are several things you need to keep in mind before selecting the right pharmaceutical company for a franchise.
The money you invest, the time you spend, and your reputation, everything will be combined while selecting the right company.
You need to be sure before signing an agreement with the company and come on the terms where the company would not cancel your franchise at least for a year.
Make sure of the products that are provided to you by the company because it is you who has to build the trust of your customers and if the products are not good, these customers would come up to you with their problems, in return, degrading your reputation.
Pharma Franchise or the PCD marketing is based on an agreement between the seller and the supplier. It is very important in PCD marketing to keep profitability as the topmost priority.
The model of the Franchise defines all the responsibilities - the supplier produces or manufactures the product and the franchisee sells and promotes the products.
PCD marketing or Pharma Franchise is growing at a rapid speed every day and has a bright future in the world of business.