Value Added Reseller Definition

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value-added reseller – n : commonly referred to by its acronym, VAR, or simply as reseller; in some industries, referred to as VAD, or value-added dealer. VARs are often locally- or regionally-oriented businesses, typically fairly small and privately-held, that specialize in selling and servicing a certain category of products; VARs are most common in business-to-business sales. Most VARs will represent products from multiple vendors (the producers of the original products). Their value proposition to vendors is to offer access to local customers with whom the VARs have preexisting relationships, plus local pre- and post-sales support, in exchange for a sales commission that varies by industry. VARs’ value proposition to end-user business customers is local service and support, often from a know supplier with whom the customer has an established business relationship.