Colorado Value Added Reseller Distribution Agreement
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How to fill out Value Added Reseller Distribution Agreement?
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Examples. Food sold in a plastic box or a glass that can be used after its content is consumed. Camera sold with converter to old type of photographic lens. One of the more recent examples of value-added selling is hybrid cars.
For example, a retail seller of computers can add value by including software or computer accessories with the basic product ? the computer. Companies with strong branding can add value to their products or services simply by using the company's logo to sell a product.
What Is a Value-Added Distributor? A value-added distributor (VAD) not only provides pick, pack and ship services for the products they sell, but also offers differentiating services and solutions that provide additional benefits to their clients.
Distributors consist of order takers, and generally lack real product knowledge. On the other hand, there are VADs, which provide a broad range of products, stock inventory, operate their own warehouse(s), supply credit to re-sellers, and have dedicated sales teams trained in understanding your products.
Similar to a distributor, a reseller sells your products to customers. However, the main difference between a distributor and reseller is the lack of warehousing. Resellers won't purchase or hold your inventory.
Value-Added Distributors operate their own warehouses and buy their products in bulk. They then provide the product to their sales channels and the sales are essentially spread among reseller companies (also known as channel partners), Value-Added Resellers, Managed Service Providers, and end-customers.
Value-added resellers include technology service companies, auto dealerships and even furniture companies. Technology service companies often offer a range of value-added products or services, such as extended warranties, service contracts, supplemental hardware, software, and installation and setup services.
The VAR buys products from the manufacturer and then resells them to its customers, adding value by offering additional services, support, and customization. For example, a software company provides a customer relationship management (CRM) software program for travel agencies.
