What Not to Do as a Franchisee of Pharma Companies?
- Loss of Licenses: When you become a franchise for a pharma company, you are required to have a certain type of licenses to distribute or market a particular product. You need to make sure that your license does not get expired during your tenure. This can result in termination of
- Misuse Benefits: Some pharma companies offer a lot of benefits like promotional material, continuous stock and supply, etc. It is unethical to misuse these items which are meant for promoting the company. It is best to not mix personal and professional interests.
- Misrepresent Revenues: You might have franchise of pharma companies which are big and would not have micromanagement to keep stock of the situation at the grass root level. But, the fact is that misrepresenting information breaches the contract that a franchisee and a franchisor enter.
- Conflicting Vested Interest: Each company big or small has some interest, opinions, standards, etc. and a franchise is required to abide by the franchisor’s interest. If as a franchisee, your interests conflict with that of the franchisor then you are in trouble. It is best to do a thorough research before entering into a contract.
- Violate the Explicitly Stated Terms: When you become a franchise of pharma companies, you have to adhere to some terms and conditions. These include having some kind of an arrangement to market the product or something along these lines. Try to keep up to the terms and conditions that you have mutually agreed upon.
- Overlook Ethics: This point does not only apply to pharma franchise but every professional dealing. If you think that the product can be harmful for any person then do not market or promote that product for petty profit. Human life is more valuable than a margin of a few bucks.
As a pharma franchise, you have to aim at maximizing your profit and you might want to make use of a variety of strategies like building rapport with the doctor, using multiple brands at the same time and focus on some for increasing your profit. While each of these strategies works well in a respective territory, you have to be sure that the strategy you follow does not coincide with your interest. At the same time, be mindful of your competition. If possible, opt for monopoly type of franchise that will reap you great benefits with considerably less efforts. At the end, all businesses have ups and downs. Remember to learn from your mistakes and take feedback. Evolve to be a better business partner and a better franchise.
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