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The VAR buys products from the manufacturer and then resells them to its customers, adding value by offering additional services, support, and customization. For example, a software company provides a customer relationship management (CRM) software program for travel agencies.
From there, the reseller takes care of the business operations and customer relations so that the vendor doesn't have to. The value-added aspect of the process means that the reseller adds additional features or services to the product before selling it to the end user.
Reseller Agreements should specify the details of the product or service delivery. Both parties should have a mutual understanding of the delivery terms, including the timelines, delivery responsibilities, delivery location, and method.
added reseller (VAR) is an organization that is usually part of a sales channel for an original equipment manufacturer (OEM).
A VAR agreement is a governing law that increases the value of a product and enhances the customer experience by maximizing complementary aspects of both companies. A value-added reseller agreement delineates reseller rights and specifies the conditions required for performing (for either party).
added reseller (VAR) is a company that resells software, hardware and other products and services that provide value beyond the original order fulfillment. VARs package and customize thirdparty products in an effort to add value and resell them with additional offerings bundled in.
While similar to distribution agreements, reseller agreements differ in the way the product reaches the consumer. Unlike distributors, resellers don't purchase and store your product, ready to sell. Instead, they act as a middleman, taking a commission when they sell your product to a customer.
Value-added resellers use OEM products to build a finished product. VARs can purchase the OEM parts and, once purchased, market those parts under the VAR's brand name. VARs order a specific product from the OEM, which can be anything technical or non-technical in nature.
What is a Resale Agreement? A resale agreement is a legal contract that is typically used between two businesses where one business decides to resell the products or services of the other business to its client base. This type of arrangement is commonly seen between software companies and services companies.
Reseller's obligations ? Responsibilities of the reseller, such as marketing efforts, sales targets, customer support, and compliance with the principal's policies.