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Value-added reseller

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A value-added reseller (VAR) is a company that adds some feature to an existing product, then sells it (usually to end-users) as a new package. 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 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. By doing this, the company has added value above the cost of the individual computer components. Customers would purchase a computer from the reseller to either save time or if they do not have the skills to build a unit themselves.

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