Why Your ValueMed Branch Should Prioritize Generics Medicines: Bigger Profits, Stronger Business

If you're running a ValueMed Generics Pharmacy, one of the most important decisions you can make is how to manage your product inventory—what you prioritize, stock, and sell directly affects your profitability.

This article is your guide to understanding why you must invest heavily in Generics Medicines, what strategies to follow, and how you can maximize your earnings through the ValueMed Rebates Program.

The Reality: Branded vs. Generics

Many franchisees mistakenly focus on push-selling branded medicines, believing this will build trust with customers. While branded meds are part of the offering, their profit margins are significantly lower, and stocking them too heavily can eat into your cash flow.

Generics Medicines, on the other hand:

• Offer higher profit margins

• Are equally effective and FDA-approved

• Are more affordable and accessible for customers

• Represent the true positioning and advocacy of ValueMed

Our Standard: 80% Generics, 20% Branded (or less)

A healthy and sustainable ValueMed store must maintain a product mix of at least 80% Generics and a maximum of 20% branded or specialty products. This ensures:

• Higher average profit per sale

• Faster inventory turnover

• Stronger alignment with ValueMed’s brand mission

• Higher chances of qualifying for rebates and discounts

Merchandising Tip: Make Generics Medicines Easy to See

Proper in-store visibility drives conversion. Here’s how to merchandise your shelves:

Top Shelf (Eye Level):

• Fast-moving generics (Paracetamol, Mefenamic Acid, Losartan, etc.)

• VitaFix supplements

Middle Shelves:

• Maintenance generics (Metformin, Amlodipine, Simvastatin)

• Pediatric generics and oral antibiotics

Bottom Shelves:

• Inventory support items, extra stock, and non-urgent lines

Behind Counter:

• RX Generics, high-value items

Display proper shelf tags and categories (Cough & Cold, Gastro, Maintenance, etc.) for customer convenience.

The Role of the Pharmacist and PA: Push Generics, Not Brands

Educate and train your frontline team to recommend Generics First.

• Reinforce that Generics are equally effective and more affordable.

• Highlight how customers save more and can complete their medication cycle.

• Use “Good, Better, Best” positioning (with Generics as the core offering).

• Only recommend branded meds when customer insists or no generic alternative is available.

This shift in selling behavior leads to better store performance and customer loyalty.

Maximize Profit with the ValueMed Rebates Program

To support this strategic direction, ValueMed HQ has launched the Revised Generics and VitaFix Rebates Program—effective immediately and superseding all previous rebate guidelines.

Program Highlights:

Qualified Products:

• Generics Medicines

• VitaFix In-House Brand Products

Monthly Purchase Targets and Rebates:

Monthly Paid Purchase (PHP)	Rebate Rate
80,000 – 119,999	2%
120,000 – 179,999	3%
180,000 and above	4%

Rebates will only apply to:

• Paid and fully collected purchases

• Net of any returns or credits

• Branded items are not eligible

Released as:

• Credit Memo/Voucher (deducted from next purchases)

• Not convertible to cash, non-transferable, and store-specific

Use: Only for buying Generics Medicines and VitaFix in future orders.

This program is built to reward smart inventory planning and financial discipline.

Action Steps for Every Franchisee

1. Conduct Inventory Review

   • Evaluate current stock mix and increase your generics ratio to 80%

   • Check your POS and shelves—are you over-investing in branded?

2. Join the Rebates Program

   • You are automatically eligible as long as you follow the collection and purchase rules

   • Coordinate with your HQ Coordinator or Operations Team if unsure

3. Submit Monthly Forecasts

   • Share your forecast in advance with the Auto Replenishment Team

   • Avoid out-of-stocks and lost sales on fast-moving generics

4. Communicate with HQ Weekly

   • Join the Zoom meetings

   • Align with your Assigned Coordinator

   • Raise support requests early (marketing, posters, stock, etc.)

Final Advice: Protect Your Cash Flow

Branded medicines may move slower, and when overstocked, they tie up cash and shelf space. With Generics and VitaFix:

• You earn more per transaction

• You qualify for rebates and support

• You strengthen ValueMed’s advocacy for affordable and accessible care

Build your store to reflect the heart of ValueMed: "Affordable Generics, Premium Care." That’s where your profit—and your purpose—lies.