Q1. What is pharma franchise?
Pharma Franchise is a franchise business. Let’s understand what a franchise business is. When a company gives permission to a person or other company to sell its products by their name. It is called franchising a business.
A franchise is an agreement between the franchisee and the franchiser. The franchisee is the entrepreneur that is going to buy the franchise from the larger company also known as the franchiser.
Q2. What is PCD Pharma and what is its full form?
Same as Pharma Franchise, Pharma PCD (Propaganda cum Distribution) Franchise refers authorization of distribution and marketing rights at monopoly basis provided by a pharmaceutical firm to Pharma distributor to use their company name or brand name on behalf of the company.
PCD Full Form – Propaganda cum Distribution learn more
Q3. Is PCD Pharma different from Pharma Franchise?
No, both PCD and Pharma Franchise are the same thing.
Q4. Is CD (Cash Discount) better or scheme better for the customer?
CD (Cash Discount) is better for the customer. The illustration is given below:
For example, a person wants to purchase medicine with cost 100 for one box
- Under Cash discount
Before Discount Cost of 10 box medicine = 1000 (100*10) i.e. 100 rupees per box and 10 rupees per strip
After Discount cost of 10 box = (1000-100) 900 i.e. 900/10 = 90 rupees per box and 9 rupee per strip
- Under Scheme
In the above case if the customer chooses the scheme (10+1)
The cost will be 1000 rupees for 11 boxes under this scheme i.e. cost of one strip 1000/110 = 9.1 approx.
Hence the Cash discount will be more beneficial to the customer than Scheme.
Q5. What are the different modes of transportation of goods?
The different modes of transport which are used for transportation of goods are air, water, and land transport which includes rail, road. The customer has to decide which transport is most suitable for him
|Name of transport/ Courier||Rate/kg (Rupees) Approx.||Time (Days) Approx.|
|Shree Azad Transport co. Pvt Ltd||8-12||10-12|
|The Professional (Air)||100||1-2|
|The Professional (Surface)||50||4-6|
Q6. What is GR/LR/Bilty?
GR stands for Goods Receipt. LR Stands for Lorry Receipt. These terms are the synonyms of Bilty. This receipt is made by the Transporter once the material is loaded on the vehicle for Delivery.
Q7. What is Draft on Delivery (DOD)? Which transports provide this facility?
Draft on Delivery (DOD) is a facility by which a customer can pay for his goods at the time of delivery by demand draft. The customer generates the Demand Draft by the name of the company in the bank equal to the number of goods and hands over to the particular transporter and the transporter in return releases the goods to the customer.
Following are some of the transporters which provide the facility of DOD:
Q8. What is Account Ledger and how can you receive payment from a customer?
A general account ledger is an account or record used to sort, store and summarize a company’s transactions. In Account Ledger, all the transactions of payment and sale of a customer are recorded in chronological order.
Following are the means by which payments can be received:
Demand Draft (DOD)
Q9. What is PTR, PTS and what are the percentages of PTR, PTS (Including GST)?
PTR – Price To Retailer (28.5%) is the price at which the goods are sold to a retailer
PTS – Price To Stockist (10%) is the price at which goods are sold to stockist
Q10. What is GST?
GST (Goods and Services Tax) is an Indirect Tax which has replaced many Indirect Taxes in India. Under GST, the tax is levied at every point of sale.
The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.
GST rates for pharmaceutical products
Q11. What is a drug license? What types of Drug License are important for us at Vibcare Pharma?
To start the Pharma business, a drug license is required. The central drugs standard control organization and state drugs standard control organization issue the drug license in India. Normally, the drug control organization issues two types DL, one is Retail drug license which is issued to a person who runs a chemist shop and another one is a Wholesale drug license which is issued to a person who wants to sell drugs on a wholesale level. In some states, retail drug license is issued only to that person who possesses the degree or diploma in Pharma from the recognized university.
At Vibcare Pharma, we do the billing on both Retail DL and wholesale DL.
Q12. What is NEFT/ IMPS/ Cheque / Demand Draft?
NEFT – It stands for National Electronic Funds Transfer. It is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals can electronically transfer funds from any bank branch to any individual having an account with any other bank branch in the country.
RTGS – It stands for Real Time Gross Settlement. It is an electronic form of funds transfer where the transmission takes place on a real time basis. In India, the transfer of funds with RTGS is done for the high-value transaction, the minimum amount being Rs 2 lakh. The beneficiary account receives the funds transferred, on a real time basis.
Demand Drafts – Demand Draft is a pre-paid Negotiable Instrument, wherein the drawee bank undertakes to make payment in full when the instrument is presented by the payee for payment. The demand draft is made payable on a specified branch of a bank at a specified Centre. So, in such cases, Demand draft is accepted where the transfer of money is guaranteed. Demand draft is valid for a period of 3 months.
Cheque – It is a document that orders a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued it is issued by an individual. Cheque may be written only by an account holder. Cheque can be dishonored due to insufficient balance. But it may take 3-4 days to transfer the amount by cheque.
Q13. What is third-party manufacturing?
Third party or contract manufacturing is referred to the outsourcing of pharmaceutical products or to get products manufactured from other manufacturing units with your own brand names.
Start Third Party Manufacturing Business
Q14. How many products do we have at Vibcare Pharma and how many divisions with Therapeutic Segments?
We at the Vibcare are dealing in Six Main Divisions namely with more than 700 products in our portfolio.
Vibcare Pharma Divisions
- Prima (General division)
- Auspin (General division)
- Cure (Cardio Diabetic)
- Grace (Derma)
- Mind (Neuropsychiatry)
- Optho (Ophthalmic)
Q15. What is credit? what is Vibcare Pharma’s credit policy?
Credit means receiving something of value now and promising to pay for it later, often with a finance charge added by the lender. Vibcare pharma’s credit policy is that no credit selling and if there is any credit selling then the customer needs to provide Bank Guarantee against the credit amount.
Q16. What is the full form of PI and what is its meaning? What is the difference between PI and Tax invoice?
PI – The full form of PI is pro forma Invoice. A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. The invoice will typically describe the purchased items and other important information such as the rates, MRP, Batch number and expiry. PI is not valid for Input Tax.
Tax invoice – A commercial instrument delivered to the buyer containing the details of products or services provided by the seller is known as an invoice. Tax Invoice is valid for Input Tax.
Q17. List all promotional materials provided by Vibcare Pharma.
The promotional materials which are being provided by Vibcare Pharma are as follows:
- Cotton Shirt with Vibcare Logo
- MR Bag with Vibcare Logo
- Water bottle
- Catch covers
- Key chains
- Order book
- Table calendar
- Visual Aid
- Prescription pads
- Trail Pack
- Visiting card
Q18. What is monopoly Right?
The monopoly means the only supplier of a particular commodity in a particular area. In a monopoly, a single person or entity controls the market. A Pharma Franchise monopoly agreement means one person or company at one location as said in the agreement. If you want to have the monopoly right then it is best to look for the vacancy in the particular location you are looking for.
Q19. What is the sales tax?
A sales tax is a tax paid to a governing body for the sales of certain goods and services. Sales tax is levied on the sale of goods and services which have been produced or imported. If the same goods and services are re-sold without any value addition, then sales tax is not levied again. Sales tax is levied under the authority of both Central government as well as state governments.
Q20. What is WHO and GMP?
The World Health Organization (WHO) is a specialized agency of the United Nations that is concerned with international public health. WHO system ensures that products are produced and controlled according to the WHO quality standards. More strictness is followed in WHO manufacturing process than GMP.
A GMP is a system for ensuring that products are consistently produced and controlled according to quality standards. GMP covers all aspects of production from the starting materials, premises, and equipment to the training and personal hygiene of staff. There must be systems to provide documented proof that correct procedures are consistently followed at each step in the manufacturing process – every time a product is made.
WHO-GMP certificates are of great value. These certificates show that the company’s quality is maintained in each department (in case of GMP certificate) and is also producing formulations, which are of international quality standards (in case of WHO GMP certificate).
Q21. What is the difference between ethical, PCD and generic medicines?
Generic medicines are the same as compare to ethical medicines in all aspects i.e. strength, dosage, efficacy, results, uses, etc. but it is cheap in price as compared to branded or ethical products. Same is the case with PCD franchise medicine; the same medicine is used as in case of generic and ethical. The only difference is the channel of distribution. We cannot say which medicine is better, medicine is the same, the manufacturing process is the same, and raw material origin is the same. The difference is created by the marketing team.