VAR Meaning: Understanding the Basics

Definition and core functions

A value added reseller (VAR) is not just a reseller. It is a company that adds extra features, services, or improvements to a manufacturer’s product. Then, it sells the enhanced product to end customers.

This model delivers more tailored solutions that meet specific business needs. Unlike standard resellers, VARs do more than move inventory. They provide customization, support, and integration services that create more value for customers and distinguish them in the marketplace.

Evolution in the technology sector

The concept of VARs emerged from the need to offer customers complete solutions rather than piecemeal products. Over time, the technology sector evolved, and value added resellers began offering sophisticated services, including hardware and software integration, cloud migration, and cybersecurity. The VAR business has shifted towards offering managed services and ongoing support to meet new market demands.

Differentiation from standard resellers

Unlike basic resellers, who just pass products along, VARs customize products to meet their clients' needs. They deliver complete solutions. They integrate components, provide training, and offer post-sale services—resulting in higher customer satisfaction and loyalty.

VAR Business Model Explained

Revenue structure

Value added resellers generate revenue from both product sales and added services. They might charge for consulting, implementation, and ongoing support, creating multiple income streams. Some also establish recurring revenue models by offering maintenance contracts or managed services.

Partnership dynamics

To succeed, VARs form strong partnerships with manufacturers. These relationships provide access to training, discounts, and partner incentives, making it easier for VARs to sell products effectively. In return, manufacturers benefit from value added resellers' local market expertise and customer relationships.

Product sourcing and distribution channels

VARs source products from manufacturers or distributors and add value by bundling them with other solutions. Distribution channels vary, but many value added resellers work closely with manufacturers through partner programs designed to foster collaboration and encourage growth.

VAR Services and Solutions Portfolio

Technical implementation

VARs provide technical expertise to deploy and configure complex solutions. For example, they may install software systems, assemble custom hardware, or conduct network configurations based on the client's environment.

Product customization

Customization is a major component of a value added resellers’s offering. This can include changing software to work with current systems, creating special workflows, or improving ready-made hardware.

Support and maintenance

Ongoing support, such as help desks and troubleshooting services, ensures the solution continues to operate smoothly. Many VARs offer maintenance contracts to guarantee updates and timely repairs, minimizing downtime.

Integration services

Integration services are critical for businesses seeking to avoid siloed systems. value added resellers connect disparate tools and platforms, ensuring seamless operation across an organization’s technology stack.

VAR Market Ecosystem

Manufacturer relationships

Strong partnerships with manufacturers allow value added resellers to access exclusive products, training, and marketing resources. Many manufacturers offer partner programs to ensure VARs have the tools needed to succeed.

Distribution channels

VARs leverage both direct and indirect distribution channels. Some collaborate with regional distributors for logistical support, while others work directly with manufacturers to reduce costs and ensure faster delivery.

End-user connections

With deep knowledge of customer needs, VARs act as trusted advisors. Their ability to build strong relationships with end-users ensures that solutions are implemented effectively and generate long-term customer satisfaction.

Partner program structures

Manufacturers often create tiered partner programs that reward value added resellers based on sales performance and market penetration. These programs provide incentives, technical support, and co-marketing opportunities to help them grow.

Value Added Reseller Benefits

For manufacturers

These resellers expand the market reach of manufacturers by customizing solutions for niche audiences. They also reduce the need for manufacturers to provide direct support, allowing them to focus on product development.

For end customers

Customers benefit from tailored solutions that meet their unique needs. Value added resellers also offer expert advice and ongoing support, making it easier for businesses to adopt new technologies confidently.

For channel partners

They add value by acting as intermediaries between manufacturers and customers. They improve product adoption and customer satisfaction, benefiting everyone involved in the supply chain.

VAR Technology Specializations

Software solutions

Many specialize in software by implementing ERP systems, business applications, and productivity tools. They also offer training and customization to ensure smooth adoption.

Hardware products

In the hardware space, these resellers configure and deploy devices such as servers, workstations, and networking equipment, often bundling these with complementary services.

Cloud services

With the rise of cloud computing, VARs now offer cloud migrations, multi-cloud management, and SaaS implementations. These services help businesses harness the flexibility of cloud solutions.

Security implementations

VARs provide cybersecurity solutions, including firewalls, intrusion detection, and compliance tools, ensuring businesses stay secure in an evolving threat landscape.

Choosing a Value Added Reseller

Evaluation criteria

When selecting a VAR, look for expertise in your industry and the ability to offer solutions aligned with your business needs. Pay attention to their track record and client reviews.

Industry expertise assessment

Ensure the VAR understands the specific challenges of your industry. Specialized knowledge allows them to tailor solutions more effectively and offer valuable insights.

Service level considerations

Evaluate the level of support provided, including response times and maintenance services. Reliable post-sale support is crucial for minimizing disruptions.

Partnership requirements

Choose a VAR that values collaboration and transparency. Strong partnerships result in better communication, smoother implementations, and more successful outcomes.

VAR Industry Trends and Future Outlook

Digital transformation impact

Digital transformation strategy is driving demand for cloud services, AI, and IoT solutions—areas where VARs excel in delivering value-added offerings.

Emerging technologies

Technologies like artificial intelligence, blockchain, and edge computing present new opportunities for VARs to expand their service portfolios and remain competitive.

Market evolution

The VAR landscape is shifting toward managed services and subscription-based models, helping customers reduce capital expenses while ensuring continuous support.

Growth opportunities

The demand for tailored solutions and end-to-end services is growing. VARs can capitalize by investing in technical expertise and expanding into new technology domains.

Value Added Reseller Best Practices

Quality assurance

Delivering high-quality solutions ensures customer satisfaction and builds trust. VARs should establish robust quality control measures to maintain standards.

Customer service standards

Providing exceptional customer service is essential. VARs that offer fast, reliable support are more likely to retain clients and generate positive referrals.

Technical expertise maintenance

Continuous training and certifications help VARs stay ahead of technological advancements and maintain their competitive edge.

Partnership management

Successful VARs prioritize strong relationships with manufacturers and customers alike, fostering collaboration and ensuring mutual growth.

The bottom line is, by understanding the role and value of a VAR, you’ll be better equipped to select the right partner to enhance your technology investments. Whether you're sourcing hardware, implementing new software products, or moving to the cloud, working with the right VAR ensures that your solutions are tailored, supported, and optimized for success.

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