Value-added reseller (VAR) meaning

The value-added reseller (VAR) pricing model is where an intermediary resells a product or service by adding additional value through customisation, integration, support, or other services.

While original equipment manufacturers (OEMs) are the companies creating the product itself, VARs can take this existing product, add additional value to customers and add a markup to the final price. This can be a beneficial practice for both OEMs and VARs, with those providing the full-service model able to help manufacturers improve their competitive advantage by identifying gaps in the market and ultimately helping sell more of the product.

How does a value-added reseller differ from a regular reseller?

In the value-added reseller model, the VAR acts as a middleman between the original product or service provider and the end customer, enhancing the offering to meet specific needs or market demands.

Factors to consider when pricing your outsourced payroll services

In this guide, we look into factors that impact your outsourced payroll services pricing strategy such as:

• Profitability and potential ROI of offering outsourced payroll services: Offering outsourced payroll as a service can now be a profitable venture with significant potential return on investment (ROI).
• What does becoming a value-added payroll reseller involve: We walk you through the key elements, from the type of outsourced payroll service you’ll be offering to how you can best shape the pricing model using market research,
• Considerations for pricing outsourced payroll services: There are a few things to consider before you select your pricing strategy such as your clients needs or feature availability.
• Pricing strategies you should consider: Once you decide the type of outsourced payroll service you want to provide your clients, there are a few options you can consider to price them.
• Next steps after you’ve signed on some clients: Once you start onboarding clients, there are a few crucial steps you must consider to make sure you provide your clients with effective onboarding and support.
• Key metrics to measure success: Measuring success requires monitoring key metrics that reflect both financial performance and customer satisfaction Identify key metrics to measure success such as customer retention rate or average revenue per client.
• When to increase fees:  As a business, you want to ensure the best possible price that will provide a return for you while still meeting the demands of your clients. There are a few things to consider if you’re unsure when to increase your fees such as growing your client base or competitive analysis.

3 pricing strategy tips for accounting, bookkeeping and outsourced payroll services firms

Pricing outsourced payroll services for accounting, bookkeeping, and outsourced payroll service firms varies based on several factors. These include the scope of services offered, the size and complexity of the client’s business, the number of employees, and the level of customisation required. Pricing models commonly used include flat monthly fees, per-employee fees, or a combination of both. Additional factors that can influence pricing include the frequency of payroll processing, add-on services like tax filing and HR support, and any special requirements unique to the client’s industry. It is important to consider these factors when determining the cost of outsourced payroll services. Download the guide to learn more.

Explore our partnership programs made specifically for accountants, bookkeepers and outsourced payroll providers.

Learn how to best set prices for your outsourced payroll service

Start driving profit through your value-added outsourced payroll services by partnering with Employment Hero today. Employment Hero is one of the world’s leading all-in-one HR, hiring and payroll platforms. Our next-gen value-added reseller software helps launch businesses on the path to success by powering more productivity every day. 

Learn more about how to become a value-added reseller in our comprehensive guide. It walks you through all the steps you need to consider, from the profitability and potential ROI of offering payroll as a service is what your clients will be looking out for, plus tips on how you can navigate your price strategy.