What is a Value-Added Reseller?

A value-added reseller (VAR) is an entity that adds features or services to a product and resells the combination as a package.

How Does a Value-Added Reseller Work?

For example, let's say Company XYZ installs accounting software for companies. It helps the company select the right accounting software, then it comes to the company's headquarters, installs the software for the company, moves over all the data from the old software package, and tests the data to make sure the import was successful. It also trains the accounting staff on how to use the new system.

As you can see, Company XYZ isn't just selling a software package. It is also selling help with converting a company to a new system.

Why Does a Value-Added Reseller Matter?

VARs are common in the technology industry because the successful use of technology involves tangible products such as hardware as well as intangible products such as software and transition work. Additionally, many customers have unique needs and situations that VARs can address.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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