What is the Scope of Profit for a Pharma PCD Company Franchise?

Posted by Surinder Thakur on September 28th, 2019

A pharma PCD company franchise is a great business opportunity today and if you are looking to start your own, then knowing the scope of profit is very important. Like any other business, a pharma company is also driven by high profits and without knowing this, jumping in would be bad idea.

In this blog, we are going to take a look at the scope of profit in a pharma business before you get started. Want to get started? Let’s take a look:

(We are going to assume the role of a franchise distributor in this case)

1. Getting marketing support by pharma PCD company franchise

One of the main profits of being a PCD pharma franchise distributor is that you get full marketing support from your manufacturer. This leaves you hard cash profits and there is no need for you to engage in various gimmicks or advertisements.

On the other hand, if you start your own pharma company with third party manufacturing, then you will need to invest in marketing as well. For a new company this can be a heavy expense and it might dampen your prospects of profit or survival.

2. General expenses

As the distributor of one of the top Indian Pharma PCD Companies, there are some expenses that you need to keep in mind. The retailer generally claims 20% of the MRP as profit. So, if we assume that the price of the medicine is 1000, retailer will get around Rs. 200.

Also, if you hire a stockiest, then 10% of the price to retailer will be charged by them, which is Rs. 80.

Then there is the doctor’s share which is 20-30% of the price to retailer – at the end of it all, you can make a profit of almost 100% on the distributor price.

3. Keeping high profit margin drugs

Some drugs have the capacity for very high profit margin. While they are slow moving and only sold when prescribed, they can bring your revenue upwards with very few sales. Keeping a good stock of these drugs is important for a new PCD franchise company.

You can get in touch with your PCD pharma franchise company and find out more about this segment. Once your monopoly business is associated with these high profit low availability drugs in your area, you will have retailers swarming you to get a piece of the pie.

Conclusion

Now that you have an idea about the main scope of profit in a PCD pharma business, getting online to look for your best options might be a good idea. In this economic slowdown, if you are looking to start a profitable business, then pharma is definitely the way to go.

There are many drug categories in the industry like Ayurvedic and Opthalmic medicines which are recording a compound annual growth rate of close to 7% and above. If you play your cards right, then becoming a PCD pharma distributor will be profitable!