A value-added reseller is a company that takes an existing product, adds its own features, integration or services to it, and resells the resulting package, usually to end users, as a complete turnkey solution rather than the original component product alone. Common value additions include system integration, customization, consulting, training and installation, and the model is especially prominent in the technology industry, where a reseller might assemble hardware and software components into a finished system built for a specialized task such as video editing. The relationships value-added resellers build with the makers of the underlying products have shaped major corporate deals, such as IBM's acquisition of Informix Corporation.
Facts
Core MechanismA value-added reseller buys an existing product, most often computer hardware or software, and adds its own features or services on top, such as integration, customization, consulting or training, then resells the combined package as a single turnkey product rather than passing the original item along unchanged. 1 Cross-Tradition Connections
Associated With
The relationships value-added resellers build with the makers of underlying products have shaped major corporate deals, such as IBM's acquisition of Informix Corporation.
Value-added resellers, who bundle additional services or components onto a manufacturer's product before resale, are a long-standing distribution channel in the technology industry.
Sources
1. Wikipedia, Value-Added Reseller
WikipediaWikipedia: Value-added reseller, lead paragraphQuote, Wikipedia: Value-added reseller, lead paragraph
A value-added reseller (VAR) is a company that adds features or services to an existing product, then resells it (usually to end-users) as an integrated or complete turnkey product.
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