What are some examples of companies that are value-added resellers?


Examples of common value-added resellers (also known as VARs) are computer retailers and service companies, car dealerships, and furniture stores. Value-added resellers are businesses that sell products manufactured by other companies in addition to selling their own ancillary products and services, thereby increasing the value of the resold product purchased by the consumer. One of the main objectives of companies in providing value-added services is to develop customer relationships that lead to repeat business.

Key takeaways

  • A value-added reseller is a company that improves another company’s products by adding valuable features or services to those products.
  • Because they have value added to third-party products, value-added resellers can resell those products at a higher price.
  • You can find examples of value-added resellers in the computer, auto, and furniture industries.

IT retailers and service companies

Value-added resellers are widely found at the computer hardware and services retail level. Computer retailers and IT service companies typically offer a wide range of value-added products and services, including extended warranties and service contracts, supplemental hardware, installation, configuration, training services, professional consulting services, customization and software programs.

Information technology companies that work with corporations often sell value-added packages that create customized turnkey solutions. For example, a corporation looking to upgrade its network infrastructure could hire a value-added reseller to develop a package that includes hardware, software, custom applications, deployment, training, and ongoing support.

To create an improved product or service, a value-added reseller must first take care to select third-party products from trusted manufacturers that produce quality goods.

Car dealers

Auto dealers often offer value-added products and services in the form of extended warranties and service contracts, or custom-made accessory parts or engine upgrades. Not all value-added services directly produce additional income for a business.

For example, value-added services offered by car dealers typically include things like offering a free rental car for customer use during a period when the customer’s car is at the dealership for repairs. The sole objective of this service is to develop relationships with customers for repeat business.

Furniture companies

One industry that is not seen as often as a value-added reseller is the furniture industry. However, to increase sales revenue and build customer loyalty, furniture stores offer additional services such as interior decoration, either as consultancy or direct service.

Some home furnishing companies offer consultations with interior designers who will visit the client’s home, take photos, measure the space, and make design recommendations based on the client’s budget and style preferences. Some designers will use computer modeling tools to help the client visualize what the furniture will look like in their space.

Businesses that specialize in selling office furniture to large corporate clients will include space planning as a value-added service. They will work with the client to create drawings that map the office space to the exact location of furniture for reception areas, cubicles, executive offices, workspaces, and conference rooms.

For both home and office furniture companies, the goal is to simplify the furniture buying process for the customer. By including professional space planning and design services as part of what they offer, these companies are removing what could be obstacles to making the sale.

The bottom line

By selling value-added products and services, a company can increase its competitive advantage over other companies. These improved products and services appeal to customers looking for a “one-stop shop” to quickly meet their needs. Value-added products and services are also important to clients who have large projects that require many components. Rather than spending time, money, and effort sourcing individual components, these customers look to value-added resellers to provide a complete solution.

www.investopedia.com

READ ALSO:  Definition of non-convertible currency
About the author

Mark Holland

Leave a comment: