Retailers, large and small, are always on the lookout for ways to increase margins and expand their offerings in the simplest and most cost-effective way possible. This is one of the reasons why franchises are such efficient business models; the hard work has been done for you. The same applies to the Value-Added Reseller (VAR) model.
What are the benefits of becoming a VAR in today’s market?
Key Benefits of the VAR Business Model
The benefits of becoming a VAR are essentially the flip side of the countless business tripwires that abound; the same elements that make a profitable and stable business so tricky to maintain.
Research and Development
This costly, yet essential element of a new product or service dictates the success or failure of a new venture. If your business is not R&D, then this can easily become a black hole of time and money. Working with a product that has already been developed fully and is a trusted brand or product allows you to focus on building your customer base and delivering great service.
Existing businesses benefit from immediate returns on a tried and trusted product without needing to invest time and money into R&D.
Every business needs customers, and for new businesses, this needs to be a primary focus. Existing businesses benefit from the VAR model by welcoming loyal customers of the manufacturer’s brand with very little effort. The product may already have online reviews which makes selling far easier, and there is no need to resell the benefits of a product which has already proven its viability.
It stands to reason that increasing your product offering increases your chances of a sale and invites a larger variety of customers into your store.
Business Growth with Greater Flexibility
Today’s market is constantly shifting – especially in the world of tech. How does this affect a VAR? Firstly, building relationships with a variety of manufacturers allows for an expanded product line. As new technology becomes available, it becomes far easier to bundle existing offerings with new services, therefore positioning yourself apart from your competitors.
As we know, some VARS don’t simply resell but add on to an established product to create something unique. Having the freedom to form relationships with innovative or emerging companies offers the flexibility to grow your business easily.
Low Capital Outlay
Retailers may not always have the funds to invest heavily in a new product line. This is where a VAR model really shines. Without the concerns of R&D or stock control, you can focus entirely on selling and delivering outstanding customer service of a competent product. You pay your supplier for orders placed and, depending on your agreements, you don’t have to concern yourself with packaging or shipping.
Big Business Support
If you’re entering into a reselling agreement with a manufacturer, you will automatically enjoy the benefits of the backing of a big business. Your success is their success.
This means that a big chunk of the marketing and brand positioning has already been done for you. It also means that you have a supportive partner when you’re planning promotions if you require branded materials such as signage, and the technical support needed when products need replacing.
VAR in South Africa
South African’s are known for their ingenuity and flexibility – their ability to “make a plan” to keep business ticking over.
We at Cellfind understand that the VAR model is something that benefits us all. We’ve got a selection of products and services which are well-known and trusted by our market, and we would love to assist you in expanding your product lines to boost your business.
Low overheads, instant customers, more products and services and the support of a well-known and trusted business are just a few of the benefits awaiting our innovative VARS.
Will you be one of them? Contact the Cellfind team today and let us answer your questions.