In many areas of India there are various different trends of offering schemes to chemists. Some place in India give 20% margin to chemists and 10+1 or no schemes.
Some places have a strict policy of only 16% margins with an addition of a deal which may be given or may not be given.
Most standard companies follow a 16% margin and some add it up with a 10+1 scheme. This is done so that the chemist is happy and does not indulge in substituting a prescription with another product.
Pharma PCD operations can also work if a PCD distributor has very strong network of chemists and has good relationships with them. Just by offering a me too product to a chemist, the Pharma PCD distributor can provide almost 30% margin to chemists t and provide a 10+2 scheme to chemists in order to coax him to substitute a bigger brands prescription with his me too products.
This practice is rampant in semi urban and rural areas where population is a little less educated and less aware too. Especially when introducing a Pharma PCD Company in a new area, the schemes that the chemists demands or the margins that the chemists expect is higher than standard companies.
Also some injectable in hospitals and medical sell only on net rates or huge schemes like 100+30 or even 100+50. This allows the chemist himself to give a commission to the doctor and make him prescribe his purchased brands.
A good practice in Pharma PCD business is to offer 20% margin to a chemist and play with schemes according to products. In Anti-Biotics offering 10+1 is maximum. In PPI and in Nutraceuticals and pain killers, offering 10+2 or even 20+5 is not a bad practice. One needs to be sure that the chemist is happy, else doctor will keep writing your brand but the chemist will substitute your brand with some other company’s medicine. This WI weakens your entire structure of business.