Value added reseller (VAR)
A Value Added Reseller (VAR) is a third-party company that adds features or services to an existing product and then resells it as a bundled solution to the end-user.
Tumisang Bogwasi
Tumisang Bogwasi
What is Value Added Reseller (VAR)?
In the technology sector and beyond, businesses often specialize in specific product lines or services, relying on a network of partners to extend their market reach. Value Added Resellers (VARs) play a crucial role in this ecosystem by purchasing products from manufacturers or distributors and enhancing them before reselling them to end-users. This enhancement can take many forms, from software integration and hardware configuration to specialized training and ongoing support.
VARs bridge the gap between complex technological solutions and the practical needs of businesses. Instead of simply distributing a product as is, they add value through customization, installation, and support services. This allows end-customers to acquire solutions tailored to their specific operational requirements without needing to manage the intricate details of product assembly or integration themselves. Consequently, VARs are indispensable for many vendors seeking to reach diverse market segments effectively.
The VAR model benefits both the vendor and the customer. Vendors gain access to specialized market knowledge and customer relationships that would be difficult to cultivate directly. Customers, in turn, receive integrated solutions that are ready to deploy and supported by expertise relevant to their industry. This collaborative approach fosters innovation and efficiency within supply chains, particularly in fields characterized by rapid technological advancement and complex product configurations.
Definition
A Value Added Reseller (VAR) is a third-party company that adds features or services to an existing product and then resells it as a bundled solution to the end-user.
Key Takeaways
- VARs purchase products from vendors and enhance them with additional features, services, or integrations.
- They resell these enhanced solutions to end-customers, often specializing in specific industries or applications.
- VARs provide significant value by offering customization, installation, training, and ongoing support, simplifying complex products for users.
- This model allows vendors to expand market reach and leverage specialized expertise without direct customer engagement.
- Customers benefit from tailored solutions that meet their unique business needs.
Understanding Value Added Reseller (VAR)
The core function of a VAR is to take a base product, typically hardware or software, and augment it to meet specific customer requirements. This
