Understanding Value Added Reseller Sales

Do you know what value-added reseller sales are? Many people do not. Even people who should know the meaning of this question do not. The term does apply to the mark up of the middleman. Basically, the middle man is the distributor who will buy the product and then resell it to the consumer. Forget the concept of the middle man for a second, as it is actually unimportant to the discussion.

A value added sale happens when the distributor purchases, packages and then sells the product to someone else. The shopkeeper is usually the final destination before the goods will get into a person's home. Screen printing services are an obvious example of this business model. Zazzle, CafePress and other Internet companies use this model as well. Of course, a person can make t-shirts and other items and do the screen printing himself, but these jobs are often not professional and leave much to be desired. After the modification is performed, the reseller will repackage the item at a cost that reflects his time, his labor, and materials.

Value added reselling is not about the middle man, necessarily. It is about producing additional merchandise that the public wants. It can include bumper stickers or it can even include custom bike services, such as the ones shown on many reality television shows. Of course, the time-honored middle man will continue to hold a hallowed position in this industry. The business owner may even fall into this category on his own without even realizing it.

By: Steven Wagner

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