A value-added reseller is a company that adds features or services to an existing product, then resells it as an integrated product or complete “turn-key” solution. This practice occurs commonly in the electronics, or IT industry, where, for example, a VAR might bundle a software application with supplied hardware.
What is ‘Value-Added Reseller’
A firm that enhances the value of the products it resells by including complementary products or services, usually as part of a package deal. Value-added resellers play a prominent role in the computer industry, and may provide additional hardware, installation services, consulting, troubleshooting, or other related products or services.
Explaining ‘Value-Added Reseller’
Value-added resellers form an important part in the distribution chain for many products. They are able to make higher profit margins if they effectively manage their value-added services. Many car dealerships attempt to be value-added resellers by adding on additional features such as custom parts and services. These features typically earn a high profit margin for the dealership.
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