A Value Added Reseller (VAR) is a company that takes a vendor's product, enhances it with additional services, integrations, or customizations, and sells the combined solution to end customers. The "value add" distinguishes VARs from pure resellers who simply pass through the product with minimal modification.
The value that VARs add takes many forms: custom configuration, integration with existing systems, training and onboarding, ongoing managed services, or bundling complementary products into a complete solution. A VAR selling a CRM platform might add data migration, workflow customization, and ongoing admin support.
VARs are particularly important in industries where products require significant customization to deliver value. Healthcare IT, manufacturing, government, and financial services all depend on VARs who understand the industry-specific requirements and can tailor generic platforms to meet compliance, workflow, and integration needs.
The VAR model creates deeper customer relationships than pure resale. Because the VAR provides ongoing services, they become embedded in the customer's operations. This creates recurring revenue for the VAR and sticky customer relationships for the vendor.
For vendors, VARs extend reach into vertical markets and customer segments that require specialized knowledge. The trade-off is less control over the customer experience and dependence on the VAR's technical capabilities and service quality.