What is a VAR (Value Added Reseller’s)

A VAR (value added reseller) is a business which resells products, commonly in the IT and technology sectors, and adds products or services to resell as a complete package with added value.

The added value comes from either combining a number of independently sourced products from different suppliers or adding services such as consulting, customising, support or training.

For example, VARs in general provide added value by offering advice and support for a wide variety of products. If a customer wants to buy a laptop, the VAR will offer and advise on several brands and specs. Once the laptop is chosen the VAR will offer additional products such as software or peripherals and also extended warranties each adding value for the customer. The VAR may also provide ongoing service and support beyond the point of sale which often is not available when purchasing directly from a vendor.

As a value added reseller you can increase the potential for repeat business because of the added value through the extra products or services provided.

A  VAR is also a single point of contact between various suppliers of products and solutions advising on and offering a broad range of expertise to see the purchase through to completion. A VAR is often well positioned to understand the customers’ challenges and to deliver a solution that exactly meets their needs.

A VAR usually purchases products from suppliers at wholesale prices adding only a small percentage as margin, so the majority of a VARs margin comes from the value added products and services.

There is no standard VAR program and each company will have its own terms, conditions and method of remuneration. Some companies will offer bespoke terms on a case by case basis, so it is advised that a VAR contact a merchant to negotiate terms.