Definition
A Value-Added Reseller (VAR) refers to a business that enhances the value of third-party products by including additional features or services before selling them to end-users. This includes adding hardware, installation services, consulting, troubleshooting, or any other related offerings on top of the core products. VARs help ensure that customers receive tailored solutions that meet their specific needs within the information technology (IT) sector.
VAR vs. Reseller Comparison
| Feature | Value-Added Reseller (VAR) | Reseller |
|---|---|---|
| Customization | Offers tailored solutions to clients | Typically sells as-is |
| Added Services | Provides hardware, installation, and support | May offer limited support |
| Target Market | Primarily focuses on businesses needing IT solutions | Serves a broader consumer base |
| Profit Source | Margins come from services and added value | Primarily from product sales |
| Relationship with Vendors | Collaborates closely to create combined solutions | Often less involved and transactional |
Examples
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Situation: A company specialized in network security could bundle firewalls, installation, and ongoing monitoring services to offer a complete network security package.
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Real-World Example: Many software companies work with VARs to supply customized software development alongside standard applications, enhancing usability and overall value for their customers.
Related Terms
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System Integrator: A company that combines various subsystems into a whole and ensures that those subsystems function together.
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Original Equipment Manufacturer (OEM): A company that builds products which are then sold under a different organization’s brand.
Illustration
flowchart TD
A[Value-Added Reseller (VAR)] --> B[Enhanced Product]
A --> C[Installation Services]
A --> D[Consulting Services]
A --> E[Support & Troubleshooting]
B --> F[End User Satisfaction]
Humorous Quote
“Being a value-added reseller means you not only need to sell the box, but you must also decide how many custom stickers and glitter you want to apply to it!”
Fun Fact
Value-added resellers date back to the early days of computing when businesses sought bespoke solutions beyond hardware, which CompuServe successfully catered to, leading to the tailor-made IT solutions we see today!
Frequently Asked Questions
What is the main benefit of working with a VAR?
Working with a VAR allows businesses to get personalized and often innovative solutions that meet their specific operational requirements, thus saving time and money!
How do VARs differentiate themselves in the market?
VARs often use customized service offerings, unique support models, and detailed knowledge of the vendor’s products to provide enhanced customer experiences.
Are VAR services expensive?
While VAR services come at a premium compared to standard re-selling, the increased value, reduced headache, and potential productivity benefits often make them a worthwhile investment.
Do VARs require certification or special training?
Many VARs become certified by manufacturers to provide their specialized services and product knowledge, which can enhance their credibility and value proposition.
Can anyone become a VAR?
Technically, yes! But successful VARs usually have a good understanding of the industry, a reliable customer base, and strong relationships with vendors.
Further Resources
- Value-Added Reseller Guide - TechRadar
- Book: The Art of Reselling: Value Added Strategies by Jason Callahan.
Conclusion
Understanding the role of Value-Added Resellers is essential for businesses looking to make the most out of their investments in technology and service-oriented solutions. They not only facilitate access to cutting-edge technology but also add critical value through their services!
Test Your Knowledge: Value-Added Reseller Quiz
Thank you for diving into the world of Value-Added Resellers—where tech meets personal touch! Remember, whether you’re sprucing up a product or adding sprinkles, every little enhancement counts! 🌟
