“A retailer/Pharmacy margin is approx. 16-22% percent at branded medicines and 20-50% at generic medicine. Along with margins they also get benefits of scheme and offers provided by companies. Retailers/pharmacies also enjoy credit facilities provided by companies and/or stockiest.”
Source:
https://pharmafranchisehelp.com/profit-margin-pharmaceutical-sector-manufacturing-marketing-distribution-pharmacy-chemist/
Given that most of the medicines sold are branded generics, 30% to 40% seems possible. Moreover in-house pharmacy won’t give any discount and sell at MRP. In the last 3 years most other businesses closed down but i don’t see any individual pharmacy shop closing down even though a lot of competition in the form of pharmacy chains and online pharmacies came up. So I doubt if pharmacy is a high volume, low margin business.
One reason could be, if I go to a medplus store most often I get the medicine I’m looking for and with a good enough discount without giving them a OTP (Apollo pharmacy). Even if a store doesn’t have the medicine they immediately tell which other medplus has that in stock. This is.a big plus since I don’t have to go around hunting for that medicine. This is lacking with Apollo pharmacy and non existent in individual pharmacy.
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