When you want to start your own Pharma Franchise business, the required documents include a Wholesale drug license copy and CST/VAT and Tin Number copy.
One can either apply for his own license or can use a stockiest license to start PCD pharma business. Applying for a wholesale drug license requires a lot of initial investment as well as time and effort. A lot of documentation is also required. To avoid all this usually one chooses to appoint a stockiest. Choosing the right stockiest is very tricky. He can either be your true partner in success or can destroy your business within no time.
If we appoint a stockiest for billing of our pharma PCD Company, then he will know exactly at what rates we are purchasing our stocks, the PCD Company from which we are purchasing stocks, the retailer to which we are selling stocks and at what rates.
The stockiest will also have an idea about the percentage commissions committed to doctors and schemes committed to retailers. This is very dangerous. Because the stockiest knows our entire profit margin and he is also a part of this value chain.
The stockiest usually expects a 5 to 10 percent margin on Price to Retailer. (Depending on the area).
If the stockiest understands that you earn a profit margin of over 30 to 40 percent even after paying everyone their due, then he might believe that there in injustice in profit distribution. This is because he thinks that without owning the wholesale drug license or any license at all, you are earning much more than what the stockiest is earning, when he holds all licenses. The Stockiest starts believing that he can successfully earn that much too himself by taking up his own pharma franchise company.
His this greed can finish your business. He knows exactly where you sell your stock and for how much. If he decides to not cooperate with you, you can instantly loose your business. Also all collection is done by the stockiest and so he has all your earned money with him.
What if he decides not to pay you back your profit?
Thus it is an important decision to choose a stockiest well.
It is preferred to appoint a stockiest who is either a close relative or a friend. The stockiest can also be an old associate. Some people are successful by making stockiest partners in their business and allow them to invest in this pharma franchise business.
If one has the finance and the long term view to operate his franchise then the best thing to do would to apply for your own stockiest license.
This investment will be recovered in maximum 6 months as you shall save 10 percent every month. And of course you will earn peace of mind and safety.