Iowa Value Added Reseller Agreement
Description
How to fill out Value Added Reseller Agreement?
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What should a Reseller Agreement template cover? Responsibilities of each party. ... Delivery requirements. ... Payment terms. ... Intellectual property rights. ... Consequences of a breach of contract. ... Dispute resolution processes. ... Data protection and processing conditions. ... Terms for future contracts.
Manufacturers outsource their sales function for two main reasons. First, the companies boast intimate knowledge of the market and can penetrate different markets with ease compared to primary producers. Second, value-added resellers facilitate direct sales to focus more on larger accounts.
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.
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.
Value added resellers may offer business-specific guidance during product implementations. Resellers who have sold to similar companies in similar industries bring value in the form of expertise.
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.
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).
