The Pros and Cons of Using a VAR

Value-added resellers (VARs) combine hardware and software into workable computer systems, thereby adding value to the individual components. As with any business option, there are pros and cons to hiring a VAR.

One of the advantages of hiring a reseller is that they are, in theory, unbiased. VARs usually represent multiple manufacturers — IBM, Hewlett-Packard, Sun, Microsoft, Adobe, Corel, Autodesk or others. They can help you choose the best overall solution from the vendors they represent. A vendor, on the other hand, will sell you only the products it manufactures.

VARs typically have experience working with small businesses and may understand a small business's needs better than a large manufacturer. VARs also tend to be small businesses themselves, so every client is important. With a smaller VAR you'll likely have one point of contact: When you need help of any kind, you'll know where to turn.

Also, vendors often have large minimum-purchase requirements that may be too big for small companies. If they do take your business, you may end up playing second fiddle to larger accounts.

Of course, there is a downside to using a VAR. They may charge more than vendors, and they rarely provide deep discounts on products. Vendors generally know their products better than VARs do. The vendor's sales and technical staff deal only with their own product lines, while a VAR's staff must learn the product lines of multiple vendors.

Vendors also tend to be larger, more financially secure companies, which is an advantage. Consider, for instance, IBM and Hewlett-Packard. Some of the appeal of dealing with these two heavyweights is that you know they'll be around next year and will stand behind their products.