Archives For value-add

The Var and the Vendor

February 25, 2011 — Leave a comment

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.

© 2011, David Stelzl

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