Purchasing Resources for Pharmaceutical Wholesalers

Business Guide to Pharmaceutical Wholesalers

Pharmaceutical wholesalers primarily sell pharmaceutical drugs, but many also sell medical supplies and machines to facilities throughout the world. Because of the wide variety of supplies that medical facilities use on a day-to-day basis, there is no shortage of wholesalers, which makes it easy for those in the medical industry to find suppliers. The supplies that wholesalers distribute can cost as low as one cent per unit and as high as $1,000,000 per machine. For example, pills and latex gloves cost a few cents per unit, and an MRI machine can cost hundreds of thousands of dollars. Pharmaceutical wholesalers provide a much-needed service, and most medical facilities cannot operate without them. Before finding a distributor or supplier to meet your pharmaceutical supply needs, there are quite a few factors to consider.

Benefits

Selling pharmaceuticals, biotechnology supplies, and medical equipment wholesale can be a profitable endeavor for your business.

Worldwide growth industry

Pharmaceutical wholesalers are part of a growing industry that is likely to continue to grow in future years. The total growth of the world pharmaceutical market is projected to be between 5 and 7 percent in 2011, according to IMS Health. Pharmaceutical wholesalers can take advantage of this burgeoning market to sell their wares around the globe. Asia and Latin America are two areas where growing demand for pharmaceuticals is leading to more profits for those in the industry.

Increasing product variety

New biotechnology and pharmaceutical inventions have increased the types of medicines that pharmaceutical wholesalers can offer. As baby boomers age, they demand new drugs and treatments to help them handle age-related diseases and disorders. A plethora of new discoveries in the past few years has also opened up new avenues of drug production and new ways to treat conditions such as stroke, cancer, autoimmune disorders, and heart disease. These new medicines and treatments tend to come at a high price, so selling only a few of these innovative products can significantly boost your bottom line.

New opportunities in generics

Many popular drugs are losing their patent protection over the next few years as their exclusive patents expire. This paves the way for new opportunities in generic medicines, which are typically cheaper than brand name drugs and correspondingly sell more than the originals. Pharmaceutical wholesalers may be able to significantly increase their inventory offerings as more and more generics come onto the scene. In a tight economy, the importance of these generic medicines becomes even more apparent.

Partnership opportunities

Working as a pharmaceutical wholesaler gives you access to many different medical professionals who recommend products to their patients. Establishing partnerships and relationships with these professionals can be both an enjoyable and profitable part of working as a pharmaceutical wholesaler. Other potential partnership opportunities include making agreements with hospitals, dental clinics, pharmacies and psychiatrists.

Pitfalls

The pitfalls of pharmaceutical wholesalers include problems that may occur with used or refurbished medical equipment, needing to buy in bulk, and a lack of warranty coverage.

Refurbished or used equipment

Refurbished or used equipment may be able to save your company money in the short term, but over time, you may see problems present themselves. Older equipment may become out-of-date technologies sooner, forcing you to upgrade to another piece of equipment. Older items also tend to break more often than new items. This could cause a problem and potential scheduling difficulties if you have medical clients waiting for a CAT scan or MRI. You also need to make sure that the medical devices have been tested by professionals that can make sure the items work up to medical standards. Problems with output or reading input could cause malfunctions or false readings that result in a poor diagnosis for a patient.

Buy in bulk

Many wholesalers require that you purchase their items in bulk. This can seem like it will save you money, but if you purchase 2,000 test tubes for $400 instead of 200 for $60 and only use 200, you’ve overspent by $140 for an item you didn’t need. Wholesale items may seem like a good deal, but this is only the case if you intend to use a large number of items. If you don’t use these items, you will have an inventory of items that you may never need. You also need to have a place to store all of the extra items you purchase, and you may need to rent a storage space.

Lack of a warranty

Warranties often come with new items, but you may not get warranties on used or refurbished items. Warranties are beneficial because they cover any problem that can occur with the machines. If your scanner breaks within the warranty’s coverage time, you can have it repaired for free by the company. However, with a refurbished model, that same problem could cost you repair fees that you were not expecting. In the long run, having a new piece of equipment may save you money.

Pricing

The employment rate for medical equipment repairers is projected to grow 27 percent by 2011, according to the United States Department of Labor. With this in mind, it’s important to understand the pricing of new and used equipment, so you can have medical supplies that work as well as possible to save you money.

Pharmaceutical wholesalers

Pharmaceutical wholesalers often provide the items you need to use with your medical equipment. Some wholesalers offer leases for medical equipment. You can choose to buy in bulk, buy new items, or buy used items. Used items may cost less, but you should take into consideration that they may not be under warranty and may malfunction. For instance, a new defibrillator could cost $1,800 or more. If you choose to buy used you may pay under $1,000. With a wholesaler’s help, you might get a bulk supply of the oils or lotions you need and cords or charging pads at a significant discount. However, if your machine breaks, it could cost more than $50 an hour to have it repaired by a qualified technician.

Conclusion

The pharmaceutical industry generates over $105 trillion annually, which makes this industry one of the largest in the world. There is no shortage of supplies on the market, but you must do your homework before choosing a supplier. Many pharmaceutical wholesalers are solely concerned with turning a profit, and these wholesalers are not concerned with the quality of their products. However, there are many quality pharmaceutical wholesalers available. Before ordering from a wholesale distributor, it is important to research each pharmaceutical company extensively. It doesn’t take much to damage your reputation within this industry, so make sure that the suppliers you choose create products that benefit your patients.