Value-added reseller

A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. This practice is common in the electronics industry, where, for example, a software application might be added to existing hardware.

This value can come from professional services 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.

The term is often used in the computer industry, where a company purchases computer components and builds a fully operational Personal Computer 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 lack the time or experience to assemble the system themselves.

ee also

*Original equipment manufacturer

References