How to start Pharma wholesale business?
The Pharma marketing business is not as easy as it looks, because of drug License liability and other technical issues. Drug license and GST registration are two main legal liabilities, that should have before opening the shutter of your shop. Let’s make the whole process easy and simplify how to start a pharma wholesale business?
How to start pharma wholesale business?
There are six main steps to follow to start the pharma wholesale business in India. Planning on step by step process makes the whole process easy. Work on the following steps to get better results from the pharma business.
1. Selection of Shop:
A shop or godown is very necessary before applying for the whole drug license. In the wholesale business, it is easy to find a shop in comparison to a retail chemist shop, because the wholesale shop does not require frontline visibility on the road.
In wholesale business, the shop or godown may be on the first floor of a building or outside of the main market. , because the sale of the product in wholesale shops is done by medical representatives by visiting doctors and retail shops.
The location of the shop should be near the main wholesale market where few other wholesale dealers already existed, it helps in the business growth due to incoming customers in the area.
2. Drug Licence granting:
Drug License procurement is a time-consuming process where lots of formalities are fulfilled. The many States like Haryana, Maharashtra the FDA department allow applying online for Drug Licence. It takes a week to two weeks.
You need a registered pharmacist for day to day sale purchase in the shop. A non-Medico person is not allowed to sell or dispense medicines to patients and customers. To find a registered pharmacist is also a time-consuming process. After completing all formalities and submission of Rs. 3000 for the license fee you will get a Wholesale drug License.
3. GST Registration:
GST Registration is mandatory for medicines whole business because you require it to purchase medicines from manufacturers and dealers. It also required for selling the medicines.
You need a PAN Number, KYC documents, and an envelope size photograph of the shop from the front side. You can easily apply for GST registration by submitting a few pieces of information about PAN number, residence details, address of the business, and few more simple questions. Get online registration here. You will get your GST number in few working days.
4. Pharma PCD-Franchise:
After completion of GST registration product purchase and the sale can be done. There are two most popular ways of business, the first is to work on the PCD-Franchise model where you can become a distributor of any Pharma Company.
Most pharma franchise PCDs provides monopoly rights to sell their products in a district territory. In this model, products are purchased on a costing basis and can be sold at MRP minus retailer margin basis.
This model is most popular and eco-friendly to the business owner because you can start with small capital investment.
5. Launch your own pharma products
The second business model is to launch your own brand’s products manufacturing by contract manufacturing from other manufacturing companies.
In this model starting, capital investment remains high, and the product range also remains limited due to the high cost per product.
However, In this type of business big and country-level market space available to market them. Liberty to sell all over India is available. Since you have to purchase at least 500 boxes to 1000 boxes per product there may be chances of product expiry before they can be sold out, in the starting phase of business, it is very hard to sell the whole stock of the product in 24 months.
The biggest drawback of manufacturing own product and market them is stock expiry which is big financial loss and this loss kill the whole earned margin from the product. As per the market experts' views starting a wholesale business with the launch of its own product is not understood safe for startups.
6. Marketing of Products:
Marketing of products is the most important part of any business. It tests the patients, temperament, skills, and arts of selling. The person with good selling skills wins the race. He can overcome all factors if he does a good sale in the month.
Marketing is most crucial and interesting because selling skills will decide the fate of the business.
People who are not good at selling products may suffer, such people should choose the first way that is an agreement of franchise PCD of a pharma company. This is really win-win type of business and a low-risk process.
Summary:
Pharma business has been remained on the top priorities of any startups due to the good margin in the business. Drug License liabilities push away the businessman from this business. However, these liabilities are once in five years. Pharmaceuticals wholesale business is a quality work and evergreen business. In this business no change in fashion and trends, it works at the same pace throughout the whole year.
People with enthusiasm and sound selling are made for this business, which can turn their lives from zero to heroes. Consistency and patients in starting phase of business are key for business owner.
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