Value-Added Reseller

A value-added reseller (VAR) is an organization that improves third-party products by incorporating additional services or features before selling them to end-users. This enhancement often includes offerings such as installation, consulting, customization, and technical support, converting a standard product into a customized solution. In this way, VARs serve as an essential distribution channel for manufacturers, especially in the information technology sector.

Collaborating with a VAR provides businesses with a strategic benefit that goes beyond mere product purchase. They function as an intermediary between manufacturers and end-users, delivering customized solutions that meet specific needs. This partnership can result in improved efficiency, specialized assistance, and optimized operations for your organization.

The IT industry is the primary domain where VARs thrive. They offer all-encompassing IT solutions by integrating hardware, software, and networking elements. These resellers enhance their offerings with services like installation and consulting to deliver complete systems for businesses.

In addition to IT, the VAR model is applicable in various other fields. For instance, auto dealerships serve as VARs by providing extended warranties, while furniture retailers might offer design services. Specialized VARs also address the distinct requirements of sectors such as healthcare and finance.

Although both value-added resellers and managed service providers assist companies with technology, they operate on fundamentally different business frameworks.