(Article is Purely for Pakistan other countries Sri Lankans and Indians may adopt the cost by simple conversion to their cost value)
This Article is taken from Ibex Magazine, May be a A non-Pharmacist touch to It.
This Article is taken from Ibex Magazine, May be a A non-Pharmacist touch to It.
Introduction
Retail Pharmacy is an outlet where
pre-packed medicine are sold for end consumers. These stores are open in every
part of the city . In addition to medicine, a pharmacy can also provide other
necessities as well. In other words, if a pharmacy is properly managed it could
also work out as a convenience store.
Investment Requirements
The investment required for this business is around 2 million rupees including the cost for inventory , decor and furniture.
The investment required for this business is around 2 million rupees including the cost for inventory , decor and furniture.
Target Audience
Target Audience for this business are users who wish to purchase medicines and other convenience store products.
Target Audience for this business are users who wish to purchase medicines and other convenience store products.
Location
The location of the pharmacy should have free parking space and should be situated close to the residential. If it is located near a hospital, the flow of customers will also increase.
The location of the pharmacy should have free parking space and should be situated close to the residential. If it is located near a hospital, the flow of customers will also increase.
Profit Margins
The profit margin on retail pharmacy medicines ranges from 15% to 20%.
The profit margin on retail pharmacy medicines ranges from 15% to 20%.
Business Model
The business model works on simple supply chain model. The retailer buys the products from the company designated distributor and sells the product to the end consumer by keeping the assigned profits and margins. This business model falls under the ministry of health. They have issued different sets of rules which are to be followed by the owner of the pharmacy.
The business model works on simple supply chain model. The retailer buys the products from the company designated distributor and sells the product to the end consumer by keeping the assigned profits and margins. This business model falls under the ministry of health. They have issued different sets of rules which are to be followed by the owner of the pharmacy.
Investment requirement (with
breakdown)
• Land – 35,000-40,000/Per Month
• Land Advance- 300000/ One Time
• License fee – 10,000/Annual
• Equipment’s and Interior – 5 Lac (One Time)
• Stock/Inventory – 10 Lac (One Time)
• Qualified Person (If the person planning to open does not hold a pharmacy degree)- 60000/Annual
• Front Enter Staff – 30000/ Per Month (3 Person)
• Land – 35,000-40,000/Per Month
• Land Advance- 300000/ One Time
• License fee – 10,000/Annual
• Equipment’s and Interior – 5 Lac (One Time)
• Stock/Inventory – 10 Lac (One Time)
• Qualified Person (If the person planning to open does not hold a pharmacy degree)- 60000/Annual
• Front Enter Staff – 30000/ Per Month (3 Person)
Initial Requirements (registration/equipment)
• Before you start your pharmacy you have to register it with the drug court and obtain proper license from the government. Before opening, an approval from the respective area drug Inspector is required.
• The basic equipment required in
a pharmacy is;
– Air conditioner for proper temperature
– Refrigerator for vaccinations
– Air conditioner for proper temperature
– Refrigerator for vaccinations
Running Cost
The overall Running cost to open up a pharmacy ranges from 20 Lac to 25 Lac depending upon the scale of the pharmacy and location.
The overall Running cost to open up a pharmacy ranges from 20 Lac to 25 Lac depending upon the scale of the pharmacy and location.
Workforce
• Trained working Front Desk Staff (2 to 3 Persons)
• Cashier (1 Person)
• Sweeper (1 Person)
• Trained working Front Desk Staff (2 to 3 Persons)
• Cashier (1 Person)
• Sweeper (1 Person)
Marketing
The Marketing tools that could be used for this type of the business are as follows:
• Boucher
• Flyers
• Banners
The Marketing tools that could be used for this type of the business are as follows:
• Boucher
• Flyers
• Banners
Breakeven Time
The break even can be achieved within a period of 6 to 12 months depending upon the business size.
The break even can be achieved within a period of 6 to 12 months depending upon the business size.
Major problems
The major problems are as follows :
• Government Restrictions and Drug Law
• Frequent visits by Drug Inspector
• Mindset of the end consumers
• Credit limit requirement by the customers
The major problems are as follows :
• Government Restrictions and Drug Law
• Frequent visits by Drug Inspector
• Mindset of the end consumers
• Credit limit requirement by the customers
Backbone of Business
The Back bone of the business is how you manage your inventory, how much you increase your stock level (shelf level) with the passage of time and how much you incorporate the consumer demands in terms of items in your stock. The business is also dependent on the increasing range of new medicines with new formulation. Keeping the updated variety of medicine also plays a key role.
The Back bone of the business is how you manage your inventory, how much you increase your stock level (shelf level) with the passage of time and how much you incorporate the consumer demands in terms of items in your stock. The business is also dependent on the increasing range of new medicines with new formulation. Keeping the updated variety of medicine also plays a key role.
Copyright Protection
Notice: This article is for education purpose so copyright
protection law is not violated. Entire article is the copy of original source
linked below.
Source Of Information Take form Ibex Business Magazine.
http://www.ibexmag.com/business-plan/open-pharmacy/
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