Key Takeaways
- Purchases products, adds services, resells at premium.
- Customizes and integrates solutions for customer needs.
- Provides installation, training, and ongoing support.
- Bridges vendors and customers with industry expertise.
What is Value-Added Resellers (VAR)?
A Value-Added Reseller (VAR) is a business or individual that purchases products from manufacturers, enhances them with additional features or services, and resells the customized solutions to end-users. VARs play a crucial role in bridging the gap between vendors and customers, especially in technology sectors like IT and telecommunications.
By integrating value-added services such as installation, training, and support, VARs help clients optimize their technology investments and navigate complex data analytics environments.
Key Characteristics
VARs are distinguished by several defining traits that set them apart from traditional resellers:
- Customization: They tailor products to meet specific customer needs through software integration or system enhancements.
- Service Bundling: VARs often include installation, training, and ongoing support to provide comprehensive solutions.
- Industry Expertise: Deep knowledge of vertical markets allows VARs to offer informed recommendations beyond simple product sales.
- Dual Revenue Streams: Profit comes from both product resale and value-added services, enhancing margins.
- Consultative Role: VARs act as trusted advisors, guiding clients in selecting and implementing technology aligned with their C-suite strategies.
How It Works
VARs purchase products at discounted wholesale prices directly from manufacturers or vendors, then enhance these offerings through customization and integration. This process allows you to receive a solution tailored to your business needs rather than a generic product.
After procurement, VARs handle installation, configuration, and training, ensuring the product works seamlessly within your existing systems. Their ongoing support helps maintain system performance and adapt to evolving requirements, often leveraging insights from the broader macro-environment to anticipate industry trends.
Examples and Use Cases
VARs are active in diverse industries, providing tailored solutions that improve operational efficiency and technology adoption:
- Technology Sector: Companies like Microsoft often partner with VARs to distribute customized software packages integrated with client-specific features.
- E-commerce and Cloud Services: Amazon collaborates with VARs to deliver cloud infrastructure solutions bundled with consulting and support.
- Advertising and Search: Google works with VARs to tailor digital marketing tools for different business verticals.
Important Considerations
When engaging with a VAR, evaluate their industry expertise and ability to customize solutions to your unique business needs. Ensure they offer robust post-sale support to maximize your technology investment's lifespan and performance.
Additionally, consider how a VAR’s consultative approach aligns with your organizational goals and readiness to adopt new technologies. Partnering with the right VAR can streamline implementation and offer competitive advantages in an evolving market.
Final Words
Value-Added Resellers combine product sales with tailored services to deliver comprehensive solutions that meet specific business needs. To maximize benefits, compare VARs based on their customization capabilities and post-sale support before making your choice.
Frequently Asked Questions
A Value-Added Reseller (VAR) is a company or individual that purchases products from manufacturers, customizes or enhances them with additional services, and resells them to end customers. They act as intermediaries, primarily in industries like IT, software, and telecommunications.
VARs generate revenue by buying products at discounted wholesale prices and adding value through customization, integration, installation, training, and support. They then resell these enhanced products at a premium, earning from both product sales and service margins.
VARs offer a range of services including software customization, system integration, installation, training, and ongoing technical support. They often act as consultants, helping businesses choose and implement the right solutions tailored to their specific needs.
Manufacturers partner with VARs to extend their market reach without adding sales staff or infrastructure. VARs bring industry expertise and established customer relationships, helping vendors access new markets and increase sales volumes more efficiently.
Customers benefit from a personalized, end-to-end solution that bundles products with installation, training, and ongoing support. VARs provide expert recommendations and manage complex configurations, simplifying purchasing and ensuring products work seamlessly within existing systems.
VARs help with setup, configuration, and integration of products to ensure they operate smoothly within a customer's existing environment. This support reduces implementation time and minimizes disruptions, making the transition easier for businesses.
VARs primarily operate in industries such as information technology, software, hardware, and telecommunications, where products often require customization and integration to meet specific customer needs.
