Value-Added Reseller
Categories: Marketing
You make the Ab-Builder 5000, a spring-loaded device that, as your ad copy puts it, "turns your mid-section into bump city, bro!" You make some direct-to-customer sales. But some of your sales are also made through third-party distributors.
One of these resellers is a chain of workout facilities called Crunch It (currently being sued by Crunch). For a flat fee, Crunch It sells customers your Ab-Builder 5000, along with a weekly class giving tips and exercise routines using the device. They show their customers interesting exercises to use in order to maximize the value of the Ab-Builder.
Crunch It represents a value-added reseller for the product. The term refers to a company that takes third-party products and adds a further good or service along with it, enhancing the value of the original product.
The technique is especially popular in the IT industry. Companies will take a piece of hardware. Then they'll add a service plan, or combine it with another device, to enhance the value.
