How to Get Profit Margin in PCD Franchise Business – Knowing your profit capabilities is very essential for all the businessman! Pharmaceuticals business is one of the highest earning industries when it comes to profit. Many companies ask their members to know about the calculations in relation to profit margin. In this post by Maksun Biotech, share you factors and ways on, ‘how to get profit margin in PCD franchise business in India’.

How to Get Profit Margin in PCD Franchise Business

Pharma Companies offer PCD franchise deals in different states at different investment to profit schemes. You can calculate your profits yourself by these easy methods. To know how to get profit margin in PCD franchise business, read the following for more insights.

Factors That May Affect Your Profit Margin in Pharma Franchise Business

Being the pharmaceuticals business may affect you widely. This industry is one of the most profitable industries in the world. You can get good business here as the profit margin is wide. Only the gap between the rate you got and MRP is not sufficient, they are several factors that include which may conclude to the final decision. Here take a look at the following:

  • The market conditions and economic status of a state varies. The price of a medicine at one location may be high and somewhere it might be low. Thus, you should know the existing list for better knowledge.
  • Middlemen have been in this business for ages. To make distribution wide and smooth, people attract doctors, specialists and physicians who help prescribe more. This also applied to brokers and agents whom you appoint to enhance sales. If you appoint them then you will need to give a certain amount of commission in it.
  • Pharma companies offer a different margin of profit. This is due to the difference in company policies Before starting any calculation, you should have a good idea about the percentage margin that they are giving to their PCD franchise members.

Best Way To Calculate Profit Margin in PCD Pharma Franchise in India

Maksun Biotech brings you the best way to calculate profit margin for those who own or want to own a PCD pharma franchise business in India. The calculations are simple and you can easily get insight to the information that is needed by you. Follow the steps and know your profit margin value at the end of the day:

  1. There are two ways to get the sales margin. You will need the MRP or selling price of the medicine or product. Sales margin can be calculated by deducting the % margin offered by the company which you have to ask them. The other way is take the discounted value that you purchased the medicines. For example, The MRP of a medicine is Rs 50. The company is offering a margin of 60% or you got the medicines at Rs 30. The difference is the net profit.
  2. You will need to deduct the commission amount to stockiest (if), doctors (If) under Price to Retailer (PTR) which is usually 20% to 30 %. This has to be calculated on total sales that you have made or entire revenue earned through sales.
  3. Free products like buy 1 get 1 or buy 1 get two are needed to be added to the value. (This can be in regards to 1- plus 1 or 10 plus 2 etc).
  4. You also need to have you expenses included in the calculations where you have mad expenditure like shipping, transportation etc. This varies from businessmen to businessmen.
  5. Once you get the difference, you need to divide it by the MRP or selling price. You will get a decimal form and this amount you have to multiply with 100 to get the net profit margin.

Conclusions

The pricing policy varies from company to company due to their policies. Thus, it is not important that if the company is big then your profit margin should be good. A slightly reputed and small company can also give better margin to PCD franchise member. Our company Maksun Biotech offers good profit margin on PCD franchise business. We are offering genuine business deals across India. if you are interested and looking for genuine PCD franchise then surely let us know. I hope the articles was beneficial for you.