Value Added Reseller (VAR)

A Value Added Reseller (VAR) is a business that enhances or augments an existing product with additional features or services, then sells the improved product as a new, integrated offering. VARs are common in the technology and software industries, where they play a crucial role in adapting products to meet the specific needs of their customers.

Role and Functionality: VARs typically do not manufacture their own products. Instead, they procure existing hardware or software from manufacturers and then customize or bundle it with additional services or functionalities. This customization can include the installation of specific software, integration of various technologies into a cohesive system, or providing tailored solutions that address unique business requirements.

Examples of Added Value:

Benefits to End Users: End users benefit from dealing with VARs because they receive a product that is ready to use and fully adapted to their particular needs. This can significantly reduce the time and technical expertise required to deploy new technologies. Additionally, VARs often provide added support services, making them a valuable partner for businesses looking to leverage new technologies without the need to develop in-house expertise.

Business Model: The business model of a VAR is centered around the expertise and value they add to the products they sell. They make a profit from the additional services and customizations they provide rather than from merely reselling products at a markup. This approach allows them to establish strong relationships with both the original manufacturers and the end customers, positioning themselves as essential facilitators in the supply chain.

In summary, Value Added Resellers enhance the capabilities of existing products and tailor them to meet the specific requirements of their clients, providing added value that goes beyond the original product specifications. This makes VARs integral to the deployment of complex technology solutions across various industries.