A value-added reseller (VAR) is a
company
A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a specific objective. Company members share a common p ...
that adds features or services to an existing product, then resells it (usually to end-users) 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.
The added value can come from
professional services such as integrating, customizing, consulting, training and implementation. The value can also be added by developing a specific application for the product designed for the customer's needs which is then resold as a new package. VARs incorporate platform software into their own software product packages.
The term is often used in the
computer
A computer is a machine that can be programmed to Execution (computing), carry out sequences of arithmetic or logical operations (computation) automatically. Modern digital electronic computers can perform generic sets of operations known as C ...
industry, where a company purchases computer components and builds (for example) a fully operational
personal computer system usually customized for a specific task (such as
non-linear video editing). By doing this, the company has added value above the cost of the individual computer components. Customers would purchase the system from the reseller if they lacked the time or experience to assemble the system themselves.
Tandy Corporation was an example of a company that sold products through VARs, using relabeled versions of its computers.
See also
*
Original Equipment Manufacturer (OEM)
*
Clevo
References
Types of business entity
Business terms
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