Value-Added Reseller

What is a Value-Added Reseller?

A Value-Added Reseller (VAR) is a company that resells software, hardware, and other products and services while adding value beyond the original order fulfillment. This added value can include additional hardware, installation services, troubleshooting, consulting, design, implementation, and training services related to the hardware, software, and networking components they resell. VARs often form channel partnerships with one or more product vendors and specialize in specific industries, offering tailored solutions that meet the unique technical and regulatory requirements of their customers.

Key Benefits for Businesses

Value-Added Resellers (VARs) play a significant role in the IT industry by serving as an important distribution channel for manufacturers and providing additional value for customers. They enhance the value of third-party products by adding customized products or services for resale to end-users. Some of the benefits of partnering with VARs include increased potential for repeat business and the ability to act as a single point of customer service-centric contact.

Successful Value-Added Reseller Examples

  • Technology service companies: These VARs offer extended warranties, service contracts, supplemental hardware, software, and installation and setup services, ensuring a comprehensive solution for their customers.
  • Auto dealerships: By providing extended warranties, car rentals, service contracts, and custom-made accessory parts, these VARs enhance the value of the vehicles they sell and improve customer satisfaction.
  • Furniture companies: Offering services such as interior decorating or professional design and space planning, these VARs help customers create a cohesive and functional living space.

Value-Added Reseller vs. Traditional Reseller

Value-Added Resellers (VARs) and Traditional Resellers both serve as distribution channels for manufacturers, but they differ in the level of customization and services they provide. VARs add significant value to the products they resell through customization, bundling additional offerings, and providing related services such as consulting, design, implementation, and training. This approach often leads to deeper customer relationships and the potential for repeat business.

On the other hand, Traditional Resellers primarily focus on reselling products without significant additions or customizations, often resulting in a more transactional customer relationship.

Choosing the Right Value-Added Reseller

When choosing the right Value-Added Reseller (VAR), it's important to consider factors such as their expertise in handling complex IT projects, industry-specific knowledge, and the range of product offerings and skill sets. A good fit between your business and the VAR can lead to trusted advisory relationships and long-term partnerships, ensuring that the VAR's offerings align with your specific needs and challenges.

Other terms

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