The Var and the Vendor

When I first entered the technology consulting business, my new manager referred to our firm as a VAR (value added reseller). VAR! He said it with pride as though it meant something special. Coming from a large bank where we referred to our services providers as vendors and VARs, I knew this was no complement. Yet our manager seemed to take pride in something that, on the client side was viewed as a commodity. I soon learned that, on the provider side, VARs were partnered with vendors, but in my heart, I knew the client perceived us all as one thing – the vendor! Simply put, we didn’t see any value in those we called vendors and there was no such thing as “Value-Add”; vendors provided people and products at the lowest possible price, and free lunches on occasion. This is not the way to position your company if you are looking to build a profitable business.