Is it right to Start Distribution with PCD companies?
Benefits to Start Distribution with PCD Companies
The pharmaceutical industry has grown manifold in the recent years. Nowadays, several entrepreneurs are creating plenty of job opportunities for qualified people.
Amongst several streams in the niche, owning a pharma franchise or PCD business is quite lucrative and profitable. It is the reason; we get many openings nowadays.
If you are a manufacturer, then it is beneficial to use PCD Company for the distribution and supply of your products.
It is not at all a bad idea because all big companies are also doing the same. PCD is a unique business model. Due to various benefits, it is considered one of the best models.
How does a PCD work?
Typically, a PCD company appoints distributors who also do marketing for it. Big companies like Cipla or Ranbaxy follow a different model of doing direct marketing. When you use PCD for distribution, it takes care of marketing but doesn’t indulge in direct marketing.
The biggest benefit of using PCD model is that you do not need to invest in the task of marketing because it becomes the responsibility of PCD service provider. You get the margin on your purchase (if you are not manufacturing) and sales.
If you are the manufacturer, then the profit margin is further high.
PCD model of distribution is a successful model today
In the context of increasing competition and increasing burden on maintaining the top and bottom lines in the business, you should seek every possible opportunity of saving a few bucks.
PCD market is great in another aspect. There are no sales targets needed in this model. The only requirement is the regular sale of the products. PCD owner takes care of visual advertizing, product cards, gift or other schemes and catch-cover, etc.
The franchise works on the advanced payment basis in most of the cases. After some time the credibility establishes. Then you can work on the post-payment basis.
You need to monitor the stock availability with the PCD. You can’t afford to have a short stock in the PCD model because it is your direct loss. Hence, keep a close eye on your product availability.
Experts feel that with the increasing process simplification in our country, it is a great idea to use PCD model for distribution.
When you are an entrepreneur, you always want cost-effective and easy business model. Statistics say that PCD has given good returns to the clients. It is the secret of its popularity.
Sample terms and conditions
It depends on the particular case, but here are a few generic terms and conditions:
- As per new rules, GSTN will be applicable
- Price is subject to change without any prior intimation
- Order availability is subject to the stock availability
- Only manufacturing defects can be replaced
- No replacement for expiry and breakage
- All disputes are subject to xxx jurisdiction only
- Payment will be reviewed periodically
These are a few examples of terms and condition. Your legal expert will help in defining the verbatim of it.
If you want to set up pharma business in any part of the India, just give us a call, and we will explain all the details regarding our pharma franchise in India. To know more about our PCD pharma franchise companies, you can call us at 98259 65521. You can also write down to us at firstname.lastname@example.org.
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