Definition
Value-added Resellers (VARs) are independent resellers of hardware and software products who go beyond the original product offering to add value through customization, integration, or other services. This acts as the bridge between technology producers and buyers, intermediaries are able to extend the services which original manufacturers may not be able to offer.
In the room
How the word shows up in a real conversation.
This technology company has made a groundbreaking product and they're looking to spread the word. The challenge they face is reaching their target market and getting their product in front of the right people. To do this, they have to come up with effective marketing strategies that will help them reach their intended audience.
In order to tackle this difficulty, the business struck a deal with Value-added Resellers (VARs). VARs are firms which promote technology products and services while also contributing value to them through their skill and service offerings.
The company has approached several Value-added Resellers that cater to their target market and proposed them to carry their product. They have been greatly impressed with the product, leading them to agree on reselling it to their customers.
By partnering with VARs, companies can expand their market reach and access more businesses & corporations. Not only do the VARs help to promote the product, but they also add value with support & training services. This helps to improve customer satisfaction and drive greater sales.
By forming alliances with VARs, the company can widen their customer base and see a surge in sales. In return, the VARs are able to provide their clients with dynamic & advanced solutions that give them an edge in the market. This win-win partnership helps both the company and the VARs to grow and succeed in their respective markets.
Common mistake
Using Value-added Reseller (VAR) as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Value Chain
Series of activities that create value for customers in a business.
Read definition →
Value chain analysis
Process of examining each step in the value chain to identify opportunities.
Read definition →
Value engineering
Systematic approach to improving the value of products or services.
Read definition →
Value engineering process
Structured methodology for enhancing value while reducing costs.
Read definition →
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