The key to becoming a value-added reseller is rooted in the principle that value takes priority over profit. Those packages are then sold as full-service solutions or value-added services. In those industries, value-added resellers create integrations, products, and features to package with existing products or services. That idea - selling augmented and enhanced products for more than they were purchased for - is the basis of the value-added reseller business model.Īs previously mentioned, the model is now most commonly associated with the SaaS development and hardware spaces. In this example, you can imagine a car dealership that purchases used vehicles and enhances them with custom parts, accessories, or extended warranties and resells them for more than it bought them for. One of the best ways to capture the principle behind the concept is to think of an automobile dealership. Then, that seller resells that "new" product at a premium. It's a model where a seller purchases a product from a supplier and adds additional features or services to boost its value. The premise of the value-added reseller business model is essentially covered by its name. Let's take a more in depth look at the value-added reseller business model. One way or another, VARs take previously developed products or services and take necessary steps to augment and get more out of them. Value-added resellers in the SaaS development and hardware spaces generally sell the products they enhance as either full-service solutions or value-added services like training or hands-on software installation and implementation. These companies then package those enhancements with existing products or services to sell as full-service solutions. A value-added reseller is a business - typically one that specializes in software or hardware - that creates integrations, products, and features to enhance existing products or services.
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