Missouri Value Added Reseller Agreement
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FAQ
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.
Simply put, the value-added reseller model works as follows: A VAR purchases products from a vendor for a predetermined price (typically lower than retail), then customizes and re-sells them to customers.
Value-added resellers include technology service companies, auto dealerships and even furniture companies. Technology service companies often offer a range of value-added products or services, such as extended warranties, service contracts, supplemental hardware, software, and installation and setup services.
Examples of common value-added resellers (also known as VARs) are computer retailers and service companies, automobile dealerships, and furniture stores.
Contents Defining the scope of the reseller agreement. Outlining the duration of the agreement. Outlining the rights and obligations of the reseller and the customer. Outlining the scope of the reseller's services. Outlining any exclusions. Setting out payment terms. Stating the payment terms.
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.
Disadvantages of Value-Added Resellers A reseller also has little to no control over the quality or features of their product, and they must rely on their manufacturer to adjust to changing customer requirements.
