A value-added reseller (VAR) is a

company A company, abbreviated as co., is a Legal personality, legal entity representing an association of legal people, whether Natural person, natural, Juridical person, juridical or a mixture of both, with a specific objective. Company members ...

that adds features or services to an existing product, then resells it (usually to end-users) as an integrated or complete " turn-key" product. This practice occurs commonly in the electronics or IT industry, where, for example, a VAR might bundle a

software Software consists of computer programs that instruct the Execution (computing), execution of a computer. Software also includes design documents and specifications. The history of software is closely tied to the development of digital comput ...

application with supplied hardware. The added value can come from

professional services Professional services are occupations in the service sector requiring special training in liberal arts and pure sciences education or professional development education. Some professional services, such as architects, accountants, engineers, d ...

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 A computer is a machine that can be Computer programming, programmed to automatically Execution (computing), carry out sequences of arithmetic or logical operations (''computation''). Modern digital electronic computers can perform generic set ...

industry, where a company purchases computer components and builds (for example) a fully operational

personal computer A personal computer, commonly referred to as PC or computer, is a computer designed for individual use. It is typically used for tasks such as Word processor, word processing, web browser, internet browsing, email, multimedia playback, and PC ...

system usually customized for a specific task (such as non-linear video editing). 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 Retail, retailer based in Fort Worth, Texas that made leather goods, operated the RadioShack chain, and later built personal computers. Tandy Leather was founded in 1919 as a leather supply store ...

was an example of a company that sold products through VARs, using relabeled versions of its computers. The relationships VARs have with their customers can be the reason for acquisitions, such as

IBM International Business Machines Corporation (using the trademark IBM), nicknamed Big Blue, is an American Multinational corporation, multinational technology company headquartered in Armonk, New York, and present in over 175 countries. It is ...

's purchase of Informix Corporation.

References

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

See also

References