Cisco Certified Refurbished Equipment Cisco and Partner Sales Internal Quick Reference Guide While Cisco always recommends positioning and selling new Cisco equipment to your customers, there are some strategic situations in which quality refurbished products are the best option to meet your customer’s needs. Read more about how you can add Cisco Certified Refurbished Equipment to your sales tool kit and sell with confidence. Cisco Certified Refurbished Equipment Other Used Equipment (Unauthorized channels) Key Program Highlights Cisco can not guarantee the quality, authenticity or legitimate ownership of product of products sourced outside authorized channels. ● Products: Over 2800 current and end of sale products from all product areas ● Pricing: 25 to 70 percent less than equivalent new product ● Products: Vary ● Quality: Remanufactured, tested, upgraded to Cisco factory ● Pricing: May be lower than Cisco but carry hidden fees, specifications using Cisco certified parts and processes ● Warranty: Same full Cisco warranty as new products including valid IOS software license ● Support: Same support options as new product ● Financing: Available through Cisco Capital ● Green: Environmentally friendly ● Sales Credit: Products eligible for sales credit such as software license and inspection fee ● Quality: varies by seller. Not all products are refurbished; some are sold as-is. External refurb vendors have no access to engineering change orders or ability to comply. ● Warranty: Varies. Provided by resellers. Usually hardware only, no warranty or support for software ● Support: Products must be inspected and have valid software license to be eligible for support from Cisco. Ideal Opportunities ● Customers you know are buying used Cisco elsewhere—Many customers don’t know about Cisco Certified Refurbished Equipment ● Customers with frozen or limited IT budgets who are considering lower priced alternatives to Cisco ● Customers buying older/end-of-sale products to maintain legacy networks ● Customers with OPEX budgets for spares and maintenance, and other non production purchases such as test labs, short term products, or disaster recovery assets ● Customers who need Cisco product now but new products are back-ordered ● Customers whose budgets are leaving them short of the complete solution they need—Blending new and refurbished equipment into one solution provides more technology for the same budget How to Order Fact vs. Fiction—Refurbished Equipment Myths Check Inventory and Quantities on Website FICTION: My account doesn’t buy used equipment FACT: Most customers have purchased used equipment at some point, though they may not have purchased from you. • 60% of IT managers surveyed have bought used equipment • Large customers may allow localized purchases for spares, maintenance or emergency needs ● Go to www.cisco.com/go/remarketing ● Click on View Inventory and log in using Cisco.com userid and password – Click on Product Inventory tab – Click “Download inventory” button to download entire inventory spreadsheet Search by part number: Single or multiple parts can be typed in or a spreadsheet uploaded. ● To verify what accessories are included, view product detail. ● Quantity shown is available for immediate shipment; contact remarketing team for work-in-process inventory availability and dates ● To order: – Direct customers and resellers order through the tool ● All sales final; no returns or credits Once you have verified quantities are available, refurbished equipment can be quoted along with new using the CCW tool. – Two tier partners order through distribution ● Our Remanufacturing Process Cisco employs the industry's most comprehensive and proprietary remanufacturing processes to ensure that its products are returned to a like-new condition. ● Inspection: Thorough physical and visual inspection. ● Testing: Comprehensive diagnostic, functional and network system tests are performed. All units must meet Cisco factory specifications. Repair: Units that fail any inspection and testing are repaired in compliance with Cisco engineering and quality standards. ● ● Restore default configuration Upgrades: Performance, quality, health and safety Engineering Change Orders applied. ● Software: Products include a valid IOS software license. ● Cleaning: Each unit is thoroughly cleaned and detailed and cosmetically reconditioned. Packaging: Units are wrapped, placed in a new protective shipping box and sealed in preparation for delivery. ● ● FICTION: Refurbished products are less reliable than new FACT: Cisco’s comprehensive remanufacturing process ensures genuine, high quality products which are backed by the same full Cisco warranty, valid license, and Cisco support options as new product. FICTION: Selling refurbished equipment competes with new sales FACT: Customers generally want new equipment if they can have it, but there are times when buying new products is not an option. Positioning Cisco Certified Refurbished Equipment helps you retain these sales and capture additional incremental sales that may be going elsewhere. • Maintaining legacy networks requires older products no longer available from Cisco • Emergency situations or when new product is on back-order • Reduced or frozen IT budgets mean customer simply can’t afford new Cisco right now • Customers have difficulty justifying expense for projects that do not immediately produce revenue, such as spares and maintenance, test labs, disaster recovery assets or shortterm projects. FICTION: It's better to discount new product than to sell refurbished FACT: Actually, you can reach the customer price point with a lower discount when selling refurbished products rather than deep discounting new product. 37 percent off refurbished list is roughly equal to 55 percent off new. In a highly competitive situation, positioning refurbished at a lower price point maintains future discount levels while still winning the sale today. FICTION: Sales reps are not compensated on refurbished equipment sales FACT: Not true. Sales of Cisco Certified Refurbished Equipment are eligible for sales compensation. Additionally, you win by gaining incremental business, maintaining customer footprint and providing one source for new and used products. Information and Resources APAC and Japan: Name Responsibility Email Telephone Ash Mathradas General Manager, Asia Pacific and Japan amathrad@cisco.com +65 6317 7183 Mike Wilkinson Regional Account Manager: Australia, New Zealand, Singapore miwilkin@cisco.com +61 2 8446 5322 DY Kim Regional Account Manager: Korea, Japan dykim@cisco.com +81 3 6434 6746 Leo Ho Regional Account Manager: Hong Kong, Thailand, Indonesia, Vietnam, Malaysia, Taiwan, Philippines leoho@cisco.com +852 2934 4672 Customer Service: care-asia-cs@external.cisco.com Reseller and Customer website: www.cisco.com/go/remarketing Copyright © 2010 Cisco Systems, Inc. All rights reserved. Cisco, Cisco IOS, Cisco Systems, and the Cisco Systems logo are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries.