cisco quick hit briefing battle the demons of the gray market with cisco certified refurbished
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You shall not buy gray market!. Cisco Quick Hit Briefing Battle the Demons of the Gray Market with Cisco Certified Refurbished. Connect using the audio conference box or you can call into the meeting: Toll-Free: (866) 432-9903 Enter Meeting ID: 208 642 103 - PowerPoint PPT PresentationTRANSCRIPT
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
Cisco Quick Hit BriefingBattle the Demons of the Gray Market with Cisco Certified Refurbished
Brian Avery
Territory Business Manager, CiscoOctober 30th, 2014
Connect using the audio conference box or you can call into the meeting:
1. Toll-Free: (866) 432-9903
2. Enter Meeting ID: 208 642 103
3. Press “1” to join the conference.
You shall not buy gray market!
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Welcome and Agenda
• Introduction
• What is a Quick Hit Briefing?
• Battle the Demons of the Gray Market with Cisco Certified Refurbished Equipment
• Cisco Promotions
• Tools and Resources
• Conclusion
Brian J AveryTerritory Business Manager
Florida Territory Commercial
Priors:
Cisco Sales and Channels (9 yrs)
President and CEO (6 yrs)Cisco Premier Partner
Director of Sales (2 yrs)Cisco Silver Partner
Financial Analyst (7 yrs)Sprint Corporation
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What Is a Quick Hit Briefing?• A weekly partner briefing series designed
for Cisco Commercial Territory partners
• Concise, relevant updates on:Cisco products and solutions
Partner programs and promotions
Partner Enablement – Demand Generation, Selling Skills, Closing Tools, etc.
Next Quick Hit Briefing
New Cisco Collaboration and UC Options for SMB Customers Thursday Nov 6th, 2014 at 9:30 ET
Check http://cs.co/quickhit for registration links and replays
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The Demons of the Gray Market
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Gray MarketersWe have a Cisco logo. We must
be legit!
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There are literally 1,000s of unauthorized gray market resellers active today
Easy to look legitimate
Usually when a product price/offer appears “to good to be true” it is a gray market reseller
Products sold in the Gray Market are: • Used and sold “as is” without warranty,
SmartNET or support• Cobbled together from multiple DOA or
used products (FrankenCisco)• Stolen!• Counterfeit!
The Gray MarketWe would
never try to trick you, Precious!
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The Gray Market
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Products sourced from outside authorized Cisco channels are not guaranteed by Cisco.
These products may have invalid warranties, and definitely have invalid software licenses, no support entitlement, and/or incorrect product configurations.
Cisco is not able to offer support, software updates, hardware replacement or SmartNET coverage on gray market products
Presents a huge business risk to the customer
The Gray Market
Tell your customers to verify!
www.cisco.com/go/warranty/
www.cisco.com/go/partnerlocator/
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
Cisco Certified Refurbished Equipment
What do your elf eyes see?
Gray marketers
everywhere!
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The Cisco Secondary Market
$3 BillionGlobal Annual
Sales
• Market is large and growing- All customer segments- All Cisco technologies
• Your customers ARE buying secondary market equipment
• Drives up discount levels on new equipment
• Proactively positioning Cisco Certified [-RF] products is the best way to compete
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Existing Partner Benefits
A lower-cost alternative
Immediate delivery
Access to end-of-sale products
Improved ROI and profitability
Single source for new and pre-owned Cisco
equipment needs
Green - recycle, refurbish and dispose
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In existence since 2001
Cisco’s authorized division of refurbished equipment
Reside under Cisco Capital organization
New and end of sale Cisco products across all technologies – 3,500+ products
Competitive Pricing 65-80% off New List
Supply available through Cisco supply chain and lease portfolio
Sold through authorized Cisco resellers and distributors or to direct Cisco customers
Cisco Certified Refurbished EquipmentProgram Specifics
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Cisco New and Pre-Owned Comparison
Inventory Latest generation products
All technologies
2,400+ models across all technologies
End-of-Sale products available
Condition New • Remanufactured and fully tested to Cisco specs Proprietary product hardware and firmware upgrades (ECOs) applied
• Valid IOS software license included
Warranty 90 day to limited lifetime Same
Support 24 x 7 hardware and software available through Cisco Technical Assistance Center
Same
Pricing • Cisco GPL
• Applicable discounts and promotions
• Discount starting at 65% off GPL
• No hidden costs
Availability • Full
• Lead times vary
• Dynamic, limited inventory
• Short lead times, if product in stock
Available Through Cisco authorized partners and distributors Same
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CCRE Value Chain – Where Does it Come From?
Remanufacturing ProcessProduct Sources Routes to Market
Stock Rotations
Service RMAand Trade-Ins
Lease Returns
Selective Buybacks
Manufacturing OverrunsEnd of Sale Inventory
Cancelled OrdersLab Equipment
Internal IT Refresh
Direct Customers
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INSPECT UPGRADE TEST
REPAIR CLEAN AND RECONDITION PACKAGE
Cisco Certified Refurbished EquipmentRemanufacturing Process
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Cisco Certified Refurbished Equipment
Cisco World-Class Contract Repair Manufacturers and facilitiesISO 9001-2000 and 14001 Certified ProcessesParts sourced from Cisco Approved Vendors List (AVL)Cisco proprietary tests and specificationsProcess Control Systems and Continuous Improvement—LEAN processesESD—Static Control systems in placeRegular calibration of all test equipmentAll Cisco Engineering Change Orders incorporatedCurrent IOS rev and license loaded
Key Differentiators - Cisco Remanufacturing
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Sparing Managed Services
• Used in lieu of 4-hour contracts
• Services savings cost – enabled when products go into production
• Use to lower hardware costs
• Managed services are usually SLA or service-driven sales
• Price savings story
• Cisco warranty on all boxes; customer should not care between new and refurbished
Infrastructure Projects
Cisco Certified Refurbished Equipment for Maximum Profitability
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Breadth of Product Lines
• Continually evaluating Cisco Inc. products and adding new refurbished products to portfolio
• 3,500+ products, across all technologies
• End of Sale products also available
Category Cisco Certified Refurbished Equipment Products
Switching
Routing
Data Center
UCS
Optical
Wireless
Security
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Frequently Asked Questions
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Can We Finance Cisco Certified Refurbished Equipment?
• Yes, and you can finance new product on the same deal as refurbished!
• Help customers: Lower total cost of ownership Reduce financial risk Realize tax savings Simplify operating budgets Make the most of their capital budgets
• Work with Remarketing Manager or Cisco Capital Channel Account Manager for assistance
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What if You Don’t Have Inventory in Stock?
• Contact your designated Remarketing Account Manager
• We can help you: Gain visibility to inventory going through
remanufacturing process See inventory coming back from Cisco
supply chain or Capital leases Search for a similar version of the
product Consider the previous-generation version
of the product, if applicable
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• Pre-Owned Equipment price list and availability available to all
- Sign up at [email protected] - View online at www.cisco.com/go/refurb
• Inclusion of stock not yet refurbished
• Dynamic inventory – check availability often
• Email us if desired products or quantities are not listed
Transparency
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Can I put products on hold or reservation?
• Yes, product can be put on short-term reservations
• If product is in stock on Cisco website (www.cisco.com/go/refurb),
− Contact your Distributor
− Distributor’s Cisco purchasing team can create a product reservation with Cisco
• If product is not in stock or shows insufficient quantities:
− Send request to [email protected]
Objections
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• Hidden costs – inspection and re-licensing fees may apply
• Possibility of poor quality and performance if not refurbished to Cisco standards
• Cisco typically will not support the product
I can get it cheaper from another source
• Hardware replacement only; no software support
• Network functionality intelligence is in the software, not the hardware
• Will the seller be there tomorrow?
My source provides a warranty
• Fully tested and remanufactured to “like new” condition
• Same warranty and support options as new product
• Fully supported by Cisco; sold through Cisco authorized channels
Refurb = used = poor quality
Objection
Your Response:
How Do I Overcome Objections to “Refurbished”?
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Tools and Resources
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1 Click Tool! View available CCRE
inventory
Upload entire Bill of Materials (BoM)
Compare new and refurb pricing
Show discount impact of blended solution
Run what-if scenarios
www.cisco.com/go/1ct
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In CCW, you can now search, quote, configure, and order remanufactured equipment and attach applicable services. Remanufactured Equipment orders should no longer be placed using the Refurbished Equipment Ordering Tool. You must place orders for all remanufactured equipment in CCW. – www.cisco.com/go/commerceworkspace/
Within CCW you can now perform the following activities:
• View equivalent pricing
• View the available remanufactured inventory
• Request inventory reservations
• Request non-standard discounts
Remanufactured Equipment in CCW
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Rebate Opportunity Must be a Certified Partner – Select or higher Must maintain certification status during the entire period
of participation Must meet minimum net bookings requirements of $62.5K on a quarterly
basis (US net) per Rebate Period Receive a 3% Rebate on all purchased CCRE SKUs. Enroll via Cisco Partner Program Enrollment – www.cisco.com/go/ppe/ More details - http://www.cisco.com/web/ciscocapital/refurbished/rfip.html
Cisco Certified Refurbished Equipment Incentive Program (−RFIP)
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Cisco Certified Refurbished Equipment Resources• Cisco Capital Refurbished Equipment Home Page | Click Here
• CCRE Contact List | Click Here
• CCRE Partner Resources | Click Here
• CCRE Program At-a-Glance | Click Here
• Download the Current Inventory List | Click Here
• View Inventory and Manage Orders in CCW | Click Here
• Program At-a-GlanceThe Cisco Certified Difference for Partners
• Operations PlaybookPlaybook for Selling Cisco Certified Refurbished Equipment
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Resources for Your Customer• Program At-a-Glance The Cisco Certified Difference for Customers
• What Cisco Certified Refurbished Equipment can do for:US Federal Government Government Provincial, State and Local Government Education Enterprise Service Provider Small and Medium Businesses
• Reference MaterialsQuick Comparison (Side by Side Matrix) The Cisco Certified Remanufacturing ProcessThe Cisco Certified Difference–Video Remanufacturing for a Greener Planet
• Think Smart about Buying Used Cisco Equipment (web microsite)
• IDC Publication–“Creating Policies to protect IT Infrastructure” | Click Here
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CCRE Use Cases
• CCRE Use Case 1 – Highly Competitive, Price Sensitive Situations | Click Here
• CCRE Use Case 2 – Customer Looking at Sparing Strategy | Click Here
• CCRE Use Case 3 – Customer Developing XaaS | Click Here
• CCRE Use Case 4 – Customer Already Buying Used Equipment | Click Here
• CCRE Use Case 5 – Public Sector LPTA Projects | Click Here
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Defend Your Position
• BP Network Integrity Begins at the Source – Explains the benefits of purchasing Cisco products from authorized channels as well as the huge business and financial risks from purchasing gray market gear.
• Cisco Systems Secondary Market Policy – Explains Cisco’s policy regarding products purchased from unauthorized sources
• Cisco Brand Protection | Click Here
• Cisco Capital Financing | Click Here
• Cisco Service Finder Tool | Click Here
• Cisco Warranty Finder Tool | Click Here
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External Websitewww.cisco.com/go/remarketing
General [email protected]
Partner Marketing Centralwww.ciscopartnermarketing.com
(In the Campaign section, search for “CCRE”)
Contacts & Resources
Contactshttp://www.cisco.com/web/ordering/ciscocapital/refurbished/contacts.html
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“There will come a day, when you may lose to the gray market, but
IT IS NOT THIS DAY!”
Win with CCRE!
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Join Us Next Week!
Next Quick Hit Briefing
New Cisco Collaboration and UC Options for SMB Customers
Thursday Nov 6th, 2014 at 9:30 ET
Check http://cs.co/quickhit for registration links and replays
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 36
Thank You