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Most resellers are retail organizations. These include grocery stores, department stores and specialty stores, such as home improvement or pet supply stores. There are many different types of retailers, from Wal-Mart to Macy's to the boutique on Main Street.
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.
Examples of common value-added resellers (also known as VARs) are computer retailers and service companies, automobile dealerships, and furniture stores.
added reseller (VAR) is a company that resells software, hardware and other products and services that provide value beyond the original order fulfillment. VARs package and customize thirdparty products in an effort to add value and resell them with additional offerings bundled in.
Simply put, the value-added reseller model works as follows: A VAR purchases products from a vendor for a predetermined price (typically lower than retail), then customizes and re-sells them to customers.
A VAR agreement is a governing law that increases the value of a product and enhances the customer experience by maximizing complementary aspects of both companies. A value-added reseller agreement delineates reseller rights and specifies the conditions required for performing (for either party).
Disadvantages of Value-Added Resellers A reseller also has little to no control over the quality or features of their product, and they must rely on their manufacturer to adjust to changing customer requirements.
VARs are frequently referred to as trusted advisors, and many seek to establish long-term relationships with their customers. VARs only mark up a product a small amount; their revenue typically comes from the value-added products and services.
Key Factors for Choosing the Right VAR Partner Define Your Goals & VAR Expectations. ... Size, Scope, Years in Business, & Reputation. ... Quality References. ... Demonstrated Experience/Certifications. ... Superior Service Delivery.
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.