What is a VAR?
As technology changes and becomes more advanced, the end users of that technology can have more difficulty understanding the products on the market and how to use the products on the market. For small businesses, trying to search the market for an expensive ERP program on their own is daunting. This is where a VAR, or value added reseller, comes in. A VAR does more than just resell ERP software. They add more value to the customer by giving advice, offering further services like consulting, engineering, implementation and more. They offer the customer more support than buying straight from the vendor ever will. Below we highlight some of the largest benefits a customer in search of ERP can gain from working with a VAR.
In comparison to a vendor, a VAR will be a much less biased option to help you make the right software decision for your company. A vendor only sells their software which they developed, while a VAR typically sells multiple different ERP systems that you can choose from as a best fit. Instead of pushing one specific ERP option on you, they can help you evaluate which one will give you the best ROI, especially since they are experts in the field.
A VAR typically is selling to less customers than a vendor. They are usually a small business that is easy to get a hold of. Instead of having a multi-billon dollar company that has thousands of employees to go through, you can usually work with the same team member at a VAR and know exactly who to call. Your needs will be met much quicker.
As mentioned before, a VAR does much more than just sell software. They can offer engineering and customization to the software. Most ERP systems do not come perfect for your business out of the box. The VAR can work with you to set up the system exactly how you need it and want to work with it. Further, the implementation process is a long process that a VAR can walk you through and help you with. As the name suggests, a VAR adds more value to your purchase.
A VAR usually has worked with specific customers in a specific industry on multiple occasions and have a specialization in that area. This means that they know what your business will be like inside and out, can offer industry specific solutions and won’t try to sell you on something that is simply unnecessary for your business. Whereas a vendor is trying to cast a large net to sell to, a VAR is specializing in helping your specific business.
In some cases, going directly to the vendor may be the best option. Some may consider skipping over a VAR and going directly to the source the best option for them. However, a small business does not have the man power to implement a new ERP system entirely on their own and usually needs help to tailor the software to their business. To get these types of amenities, you need to work with a VAR.