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A value-added reseller (VAR) is a
company A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared go ...
that adds features or services to an existing product, then resells it (usually to end-users) as an integrated product or complete "
turn-key A turnkey, a turnkey project, or a turnkey operation (also spelled turn-key) is a type of project that is constructed so that it can be sold to any buyer as a completed product. This is contrasted with build to order, where the constructor builds ...
" solution. This practice occurs commonly in the electronics or IT industry, where, for example, a VAR might bundle a
software Software is a set of computer programs and associated documentation and data. This is in contrast to hardware, from which the system is built and which actually performs the work. At the lowest programming level, executable code consists o ...
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 industry, where a company purchases computer components and builds (for example) a fully operational
personal computer A personal computer (PC) is a multi-purpose microcomputer whose size, capabilities, and price make it feasible for individual use. Personal computers are intended to be operated directly by an end user, rather than by a computer expert or techn ...
system usually customized for a specific task (such as
non-linear video editing Non-linear editing is a form of offline editing for audio, video, and image editing. In offline editing, the original content is not modified in the course of editing. In non-linear editing, edits are specified and modified by specialized s ...
). 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 Tandy Corporation was an American family-owned leather goods company based in Fort Worth, Texas, United States. Tandy Leather was founded in 1919 as a leather supply store. By the end of the 1950s, under the tutelage of then-CEO Charles Tandy, ...
was an example of a company that sold products through VARs, using relabeled versions of its computers.


See also

*
Original Equipment Manufacturer An original equipment manufacturer (OEM) is generally perceived as a company that produces non-aftermarket parts and equipment that may be marketed by another manufacturer. It is a common industry term recognized and used by many professional or ...
(OEM) * Clevo


References

Types of business entity Business terms {{Business-term-stub