A value added reseller (VAR) is a company that enhances the value of a product it sells by including complimentary products or services as part of a package deal. These products are usually presented to consumers as a “turn-key solution” or integrated product. Value added resellers are common in the tech industry with bundled software, hardware and applications. However, this type of distribution method could work for almost any type of product. Many entrepreneurs and inventors consider VARs among their options for distribution of goods. If you are one of these entrepreneurs chock full of manufacturing business ideas and you are interested in learning about how you can find the best value added reseller, keep reading below. There, we have outlined the top six tips and tricks to choosing the right VAR for your product.
MSP vs. VAR
Understand the difference between managed service providers vs. value-added resellers. This is a must if you are trying to find the best value added reseller. There are important differences to note. However, many have blurred the distinction between the two with the rise of cloud technology and SaaS. MSPs operate and maintain technology for a particular period of time. Value-added resellers offer third part software and hardware to end users packaged with additional services. These services include consulting, configuration or customization. Keep these differences in mind in order to find the best solution for your product.
The first tip you should follow in order to find a VAR for your small business or product is to shop around. Many aspiring entrepreneurs will jump at the chance to work with a big value added reseller, and this can often lead to them earning less than they could have. Be sure to look up as many value added resellers as possible so that you can compare pricing and offers and make the best decision for your ideal business process.
Use Key Words
When researching the right value added reseller for your product, be sure to use key words to help narrow down your search. Resellers are often established in one particular area or industry. By fine tuning your search process you can ensure that you are viewing the most optimal candidates to sell your product.
It is also important to take a moment and consider the needs of your business or product in order to ensure that you are finding the right VAR. After all, this is one of the best practices for hiring. Many resellers also assist entrepreneurs and product providers with management, marketing and other assistive services. Determine ahead of time if you are in need of any of this. That way, you can limit your search criteria by the value added resellers who offer those specific services.
Specificity is not only important when it comes to the needs of you and your business. It is also important to be specific with the value added reseller and customers that you are looking for. Consider who you envision buying your product and then find out if your VAR can successfully cater to that group.
When in doubt, it is always a good idea to seek advice from your business network. Speak to other entrepreneurs or small businesses in your area that utilize this distribution method. Ask around your industry for advice. Word of mouth can provide you with great references for potential value added resellers.
Asking questions is an essential part of the search process. If you find a candidate that you like, do not be afraid to ask them for details. Set up a meeting and interview them in the way you would interview a potential employee. Ask about their recent successes and their experience with other brands of the world to see if they are a good fit for your product.
Value added resellers can be a great option for entrepreneurs who want to get their product out to the public. With this industrial buying practice, it can be tricky to find the right VAR at first. However, as long as you follow the tips above you should be able to locate your perfect distributor in no time.
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