What is Value-Added Resellers ?

1538 reads · Last updated: December 5, 2024

Value-Added Resellers (VARs) are businesses that not only sell manufacturers' products but also provide additional services and solutions to enhance the value of those products. VARs integrate, customize, install, train, support, and offer other services to deliver comprehensive solutions that make the products more attractive and valuable to customers.Key characteristics of Value-Added Resellers include:Value-Added Services: Provide additional services such as system integration, software customization, installation and setup, user training, and technical support.Solution-Oriented: Focus on meeting customer needs by delivering complete solutions rather than just selling individual products.Customer Relationships: Build long-term relationships with customers by delivering high-quality services, enhancing customer satisfaction and loyalty.Technical Expertise: Possess strong technical background and professional knowledge, enabling them to offer technical consulting and support.Applications of Value-Added Resellers:Information Technology: Such as IT system integrators, software developers, and network solution providers.Industrial Equipment: Such as automation system integrators and machinery equipment dealers.Medical Devices: Such as medical equipment distributors and health solution providers.Value-Added Resellers play a crucial role in enhancing product value, improving customer satisfaction, and expanding market reach, making them key partners for manufacturers across various industries.

Definition

Value-Added Resellers (VARs) are distributors who not only sell manufacturers' products but also provide additional services and solutions to enhance the product's value. VARs offer complete solutions to customers through integration, customization, installation, training, and support, thereby increasing the product's appeal and usability.

Origin

The concept of Value-Added Resellers originated in the 1980s with the rapid development of the information technology industry. Companies began seeking partners who could provide comprehensive solutions rather than just product sales. This led to the formation of the VAR role, serving as a crucial link between product manufacturers and end-users.

Categories and Features

The main features of VARs include:
1. Value-added services: Offering services such as system integration, software customization, installation, user training, and technical support.
2. Solution-oriented: Providing comprehensive solutions based on customer needs, rather than just selling individual products.
3. Customer relationships: Building long-term partnerships with customers by delivering high-quality services to enhance customer satisfaction and loyalty.
4. Technical expertise: Typically possessing deep technical backgrounds and professional knowledge to offer technical consulting and support.

VARs are applied in fields such as information technology, industrial equipment, and medical equipment.

Case Studies

Case Study 1: Cisco Systems collaborates with its VARs to provide network solutions. Cisco's VARs not only sell Cisco's networking equipment but also offer network design, installation, and maintenance services, helping customers achieve efficient network management.
Case Study 2: Microsoft Corporation uses its network of VARs to promote its enterprise software products. VARs provide software customization, installation, and user training services, ensuring customers can fully utilize Microsoft's software products.

Common Issues

Common issues include:
1. How to choose the right VAR? It is recommended to select based on the VAR's technical capabilities, service quality, and customer reviews.
2. What is the difference between a VAR and a regular distributor? VARs provide additional services and solutions, whereas regular distributors typically only handle product sales.

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