Most of the pharma companies these days rely on Propaganda Cum Distribution (PCD) as it provides a better avenue to generate higher sales and reach up to various people at the same time. While these pharma companies are giving away franchise to the local people, it is also necessary to understand that the selection of location and working area should be done precisely so as to not undergo any losses. Working area should be under the direct access of the individual.
Attaining a PCD franchise from a Pharma company differs from the job of a Medical Representative (MR) in a company. Working at the post of MR, the company provides you all the necessary allowances for traveling, accommodation, internet expenses, etc. and the profit or loss is borne by the company itself. Whereas, in the case of pharma franchise, the loss and profits have to be borne by the distributor itself. Moreover, the marketing area is also decided by the company in an MR Job, but the PCD franchise owner has to select the area to market on its own. So, it becomes more important to select the right area and then work efficiently in that zone to generate better sales revenue.
Important things to remember while selecting the right area for PCD pharma franchise –
Do not try to spread your reach at far off places, like in the nearby 2 – 3 districts. It is because you would not be able to handle the stockiest or distribution stores’ sales directly and the sales of those pharma distribution units would be difficult to track.
Even after you have an influential reach at the far-off districts as well, there is a greater probability that the sales would not be up to the standards as compared to those under your direct supervision.
When an MR gets a PCD franchise for pharma products, it seems easier for the person to generate higher sales as the individual must be having a stronger association with the doctors in nearby districts. The idea of cashing in all the doctors from the nearby places would help in increasing the sales, but the perspective here proves wrong. The reasons behind this are –
- The cost of transportation and traveling to those places would be higher.
- All the expenses will be solely borne by the individual and not the pharma company.
- Reimbursement of the expenses is not an option in PCD pharma franchise.
- Tracking of the sales and recovery becomes difficult. One cannot go daily and check with each distributor. Thus, there are higher chances of falling revenue.
- Improper tracking and supervision can also lead to delayed payments from the far-off distributors.
- You are liable to be taken advantage by the chemist as you only inspect them once or twice a month.
- One cannot track the replacement in the marketing of PCD pharma.
- The stockiest are mostly expert in their stock areas. The one you would appoint cannot provide better results for the area outside his expertise limits. Thus, creating a limitation for your sales.
- The far-off chemist shops may sometimes not receive the stocks on time, which can hamper the reputation of the Pharma Company as well as yours.
- Working at the places outside your reach can cause great debts. The accounts would not be clear to you, which can lead to various nonmoving products under short expiry.
In a propaganda cum distribution business, it is important to limit yourself to a smaller area. This ensures that the individual will be receiving higher sales than debts. Moreover, the stocks will be updates within time. Select the apt area for marketing with the greater density of doctors that can be managed well.