A value-added reseller (VAR) is an organization that adds attribute(s) or its own ‘value’ to an existing product(s) before reselling it to end – users or other businesses as a complete package. This is very common nowadays in the IT industry when new software applications are added to existing hardware.
For example, a value added reseller might take any operating system like IBM’s OS/390 with Unix services and add its own proprietary UNIX application for medical researchers and then resell the complete package to medical research firm. Another example of a value added reseller could be that he may source a printer, chip, monitor, memory card, hard drive and software from different vendors and assemble them to sell as one product.
Lately, VAR has also found its place in the services field and offers various components like system design, strategic planning, system implementation, asset tracking, database development, web development, consulting, research and technical support.
There are various advantages for buying from value added resellers. Resellers have pre-negotiated pricing on products and services from authorized distributors that enable them to get higher discounts as compared to what a customer would get if going direct. This is because a reseller has higher tiered discounting due to previous engagements for other clients, and the strategic partnership between the source vendor and value added reseller which brings in bulk business.
The value added reseller can also collaborate with other vendors which help the client in deciding the best solution for them. This would work out better for clients as otherwise the client would have to individually speak to all vendors and trust their word. In the case of buying from a value added reseller, the client would only have to confront one single company for the defects of its product or service. Thus, the client’s business would benefit from cost savings as well as time savings.
If you have a business or know someone who does, then have them search for a value added reseller in their area.
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