You leave your job and take up a pharma-franchise of a reputed pharma company to be able to earn better than you used to. You hope that you will be able to attain the same sales that you used to and hence earn more. But not all pharma franchise distributors are successful. In fact the success rate is only about 60 to 70 percent.
There are many common mistakes that first timers make while running their own pharmaceutical franchise business. Some of them are as follows:
Large Area of Operation: Usually representatives with reasonable experience of marketing in an ethical pharma company take up pharma franchise. These representatives are often relocated to different cities for marketing and they develop relationships with doctors over time. So once they start a franchise company they feel they should make use of all their connections, area no bounds. This is a poor strategy. There are a lot of additional expenditures involved in serving doctors far away from your home town. Also there are higher transportation charges for goods to reach chemists and collection from those chemists becomes difficult. Since the doctors are located far away, you can make calls to them only one or maximum twice a month. Best strategy would be to target only 30 good doctors in an area close to home. Make 5 calls to them a month. Make only 5 calls in a day. This way service to them is better and collection becomes easier from chemists.
Too many doctors: During their job, the representative has a list of 100 to 200 doctors to whom he has to make calls. During franchise having these many doctors do not make sense. Its best to start with a limt of 20 to 25 close doctors who are sure to support you. Serving a doctor requires time, money and commitment. If we try doing too many doctors at once, chances are that we wont be able to give them enough time. Also investment is always limited when starting, investing in too many doctors all at once may not be the best strategy.
Hiring MRs to do your job: When you hire Medical reps to visit doctors, then most of your secrets are exposed to him. He knows where you purchase from and where you sell. He knows the doctors and slowly develops his own relations with them. Slowly, he also inquires with the PCD franchise companies for a new franchise and steps on your foot and starts marketing his own products to the same doctors. All of a sudden you will see you pharma franchise business facing losses and finally close down.