Remarketing
Doug Karmin
Manager, Business Development
Cisco Capital
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CiscoSystems,
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Agenda
• Defining the Challenge
• Using Remarking to Compete
• Program Overview
• Success Stories
• Lessons Learned
• Working with Remarketing
• Contacts
• Summary
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© 2003 Cisco Systems, Inc. All rights reserved.
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Defining the Challenge
• More customers are looking for low cost alternatives
to new Cisco product
(1) Economic conditions causing tightening of capital spending
(2) Spike in available gray market equipment due to bankruptcies
(including latest technologies and unopened boxes)
(3) New product competitors are also using deep discounting to
compete on price (e.g. Extreme, Dell, etc.)
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Example of Broker Competition
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Using Remarketing to Compete
• Continue to try to sell new product first
• If customer looking for used Cisco:
(1) sell the value of Cisco’s authorized remarketing program
(2) explain the hidden costs and risks of gray market gear
• Tool to use against competitors offering deep discounts
on new product (e.g. Dell, Extreme)
• Customers looking for End of Sale product
• Lead time issues on new product
• Combine Cisco Capital Financing with Remarketing
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Cisco Authorized Refurbished Equipment
• Pricing: Refurb list prices average 25-30% off new
product list prices, but varies by product. Standard
discounting applies, and price deviations considered
for competitive deals.
• Commissions: Paid to Cisco reps similar to new
products. No conflict with the sales force.
• Support: Warranty same as new product; SMARTnet
eligible without additional inspection fees
(distinction from gray market)
• Distribution: Cisco’s 2-tier distribution partners
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Cisco Authorized Refurbished Equipment
• Availability: Based on stock on-hand; no build-toorder or reservations
• Refurbishment: Done by Cisco’s repair partners
(Solectron, Cerplex, etc). Includes screening for
engineering changes.
• Software: All current rev with new software license
(distinction from gray market)
• Geographies: U.S., Canada, Europe, Japan,
Singapore, Korea; expanding internationally
• Ordering: Distributors order through special refurb
portal (http://www.cisco.com/dprg)
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Check
prices &
nventory
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Enter part
number
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Results show
refurb list
price & current
availability
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© 2003 Cisco Systems, Inc. All rights reserved.
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Success Stories
Service Provider
Federal Government
• Customer under pressure to buy
used Cisco to save money
• Federal customer looking
for low cost solution
• Sales team contacted
Remarketing team
• Foundry bidding
aggressively
• Customer preferred buying refurb
from Cisco (warranty, licenses,
etc.)
• Account team engaged
Remarketing for Cat6K’s
• Customer bought $5M in refurb
from Cisco in last two years, and
continues to buy new Cisco
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• Customer preferred Cisco
once we became
competitive on price
• Won the deal for over $1M
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Lessons Learned
• Introduce Cisco Authorized Refurbished Equipment early in
the sales cycle when possible.
• Consider new/refurb solutions or N-1 technology when price
is a factor (blended deals).
• Try to determine if your customers are currently buying used
Cisco equipment from other sources
• Most customers care about licensing and certification, and
prefer Cisco Authorized Refurbished Equipment if they know
we offer it
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Working with Cisco
• Cisco does not have visibility to the deals you
work on
• Keep us in mind before losing a deal on price or
before excessive discounting on new
• How to engage Cisco Remarketing:
(1) Check current inventory and price on the web
(2) Contact Sales team
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Contact Points
• Refurb Inventory and Pricing
http://www.cisco.com/dprg
• Remarketing Sales Support:
Doug Heimbach (dheimbac@cisco.com): (321) 235-8006
Kyle Rowland (krowland@cisco.com): (919) 392-2319
• General Remarketing: care-us@cisco.com
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Summary
• Large sales opportunity exists
-Gray Market competition
-Price sensitive deals with new product competitors
• Remarketing can help improve margins on price
sensitive deals.
• Contact Remarketing Sales Support for help on
specific opportunities
• Remarketing is here to help you drive
incremental revenue
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