Value-Added Reseller (VAR)

A Value-Added Reseller (VAR) is a company or individual that adds value to a product or service before reselling it to end-users. VARs play a crucial role in the distribution channel by providing additional services, customization, integration, and support to enhance the value proposition of a product or service.

How VARs Operate

VARs typically collaborate with original equipment manufacturers (OEMs) or vendors to acquire products or services at wholesale prices. They then augment these offerings by incorporating their expertise, industry knowledge, technical skills, and complementary products or services. This value addition can range from software customization, hardware configuration, system integration, installation, training, maintenance, and ongoing support.

Benefits of VARs

VARs offer several benefits to both vendors and end-users. For vendors, partnering with VARs expands their market reach and enables them to focus on core competencies such as product development and innovation. VARs act as an extension of the vendor’s sales force, leveraging their existing customer base, relationships, and industry expertise to promote and sell the products or services.

End-users also benefit from VARs in numerous ways. VARs serve as trusted advisors, guiding customers through the complex landscape of available solutions and tailoring them to meet specific needs. They provide a single point of contact for product selection, implementation, and ongoing support, simplifying the procurement process. VARs often possess extensive product knowledge and technical expertise, ensuring that customers receive the most suitable and efficient solutions for their requirements.

VARs vs. Resellers

VARs differ from traditional resellers or distributors in their value-added approach. While resellers typically focus on product transactions, VARs emphasize the integration of products and services to deliver a complete solution. VARs go beyond the mere resale of products by offering pre-sales consulting, post-sales support, and ongoing customer service. This added value enhances the overall customer experience and fosters long-term relationships.

VARs in the Financial Services Industry

In the financial services industry, VARs play a vital role in providing tailored solutions to meet the unique needs of financial institutions. They collaborate with vendors of financial software, hardware, and services to customize solutions that address specific regulatory requirements, security concerns, scalability, and performance demands. VARs in this sector often possess in-depth knowledge of financial systems, compliance, risk management, and industry best practices, enabling them to deliver comprehensive solutions that optimize operations, improve efficiency, and drive business growth.


Value-Added Resellers (VARs) are instrumental in bridging the gap between vendors and end-users by adding value to products or services through customization, integration, and support. By leveraging their expertise, VARs enhance the overall customer experience, simplify the procurement process, and provide tailored solutions to meet specific needs. In the financial services industry, VARs play a crucial role in delivering comprehensive solutions that optimize operations and drive business growth for financial institutions.