The Remarketer

The Used Cisco Buyer’s Guide

Tue, 07 May 2013 09:59:00 -0500

As a networking hardware user or network admin, you may not even know how to get started in looking at buying used Cisco. I’ve compiled this resource to shed some light on the second hand market for Cisco hardware.

Who are the main players in the used cisco market?

Cisco Authorized VARs Cisco’s authorized channel partners have access to Cisco’s pool of refurbished Cisco gear. If you’re currently buying new hardware from a partner then you can also buy certified Cisco refurb gear from these same resellers.
This pool is limited to what Cisco currently has available (typically much less than the open market) and discounts aren’t always that great, but the product is certified by Cisco.
Cisco Authorized Refurbished equipment (aka “Cisco reman”) is immediately eligible for maintenance and includes all of the typical licensing. Packaging is similar to new Cisco except that it will include stickers signifying that the hardware has been factory refurbished.
Independent Cisco Resellers AKA brokers, dealers or remarketers.These resellers are not authorized to sell new Cisco, but instead sell equipment that they’ve acquired via lease returns, liquidations or end-user trade-ins.Inventories can far exceed what you’ll find in Cisco’s pool and pricing is much, much lower than new in most cases (up to 90% off new).Used Cisco from independent resellers will include a warranty (from the reseller), but typically has to be recertified by Cisco and licenses need to be acquired in most cases to legally use the equipment and place it under maintenance. Packaging is normally equivalent to new quality, but is sent in plain brown boxes and anti-static bags rather than Cisco labeled packaging.Buyer’s choose independent resellers of used Cisco for benefits such as immediate availability and of course the massive discounts.
Our firm, Vibrant Technologies, fits in this category. (Request a quote)
Auction Sellers, User to User and Scrap resellers Individual Cisco users bring their wares directly to market via auction sites or forums such as eBay, Craigslist and Yahoo Auctions.There is a growing amount of Cisco equipment on these sites, but most of the listers seem to be resellers, not users. You’ll also find a lot of scrap resellers who can’t test the equipment and in other cases – outright scammers. Prices are all over the board.Quality, trust and support are serious concerns here. You want to be sure you don’t get bad equipment or completely scammed. Packaging can really leave something to be desired. We’ve seen actual popcorn (buttery!) used in place of packing peanuts and deli meat bags used to pack memory. Not to mention that the boxes are so thin that it’s amazing more products don’t get damaged.

How soon do Cisco Routers and Switches become available Used?

2-3 Months after a product has been released new, you can typically find it used.

This may come as a surprise to some who assume you can only find 2nd or 3rd generation hardware used.

Due to bankruptcies, mistaken purchases, or demo units, it is possible to find the latest and greatest as well as EOL equipment.

Is Used Cisco the same as Gray Market Cisco?

No, Gray Market product is equipment that has been purchased new from another country in order to be sold in a region where the manufacturer charges more for it. Used Cisco hardware is just previously used equipment given a second life.

If a used Cisco reseller offers you “new Cisco” it is likely gray market product. In some cases, product is available in new/sealed/retail condition from resellers or at auction, because the end-user never got around to opening the item. These products should be referred to as “unused” instead of “new” since ownership has transferred.

Legalities:

Both Used Cisco and “Grey market” hardware is legal to buy and sell in the United States, as upheld in the recent Kirtsaeng v Wiley US Supreme Court decision. The First Sale Doctrine basically allows that if you bought it, you own it – and you have the right to resell it.

Laws may vary by country. For example, the European Union generally restricts the resale of products (used or new) that were originally intended for anywhere outside the EU. In order to resell a branded product in that region, it must be from that region, not imported.

For Vibrant, this limits our exports to Europe, but otherwise we don’t face many other restrictions internationally beyond the usual import tariffs.

What condition of equipment should I expect from Used Cisco hardware?

Just because you’re purchasing used equipment, you shouldn’t have to settle for low quality. Cisco reman and used Cisco gear acquired from legitimate brokers is typically in similar condition to what is currently in your datacenter. Occasionally dealers will offer further discounts on “ugly-duckling” equipment that functions, but has some scratches or dings. You should be informed of any imperfections upfront.

At Vibrant, we like to think of your networking equipment as basic plumbing. It’s not that hard to get it right, and you don’t want to spend a lot of money on it. We help companies save money on their infrastructure, so they can invest in what really matters – people and applications that drive ROI for your business.

How are prices set on the used market?

The used Cisco market is an open market where equipment is traded as a second-hand commodity. Prices rise and fall based on perceived availability and demand in the marketplace. The best way to compare prices is to do so against other resellers because comparing against list is completely arbitrary.

Depending on the model or feature, discounts can range from 30 to 90% off list. See “List Prices and Discounts for Used IT Hardware.”

When is the best time to buy?

Give yourself time to check out all of your options, but also know that used resellers can typically ship overnight if you’re in a pinch. End of month, end of quarter and end of year are great times to buy as sales reps aim to meet their quotas.

How do I confirm that I’m working with a quality reseller?

Do your due diligence. Check references, confirm years in business,etc…
Check associations. Find out if they’re members of industry associations like UNEDA or ASCDI or if they’re in the BBB.
Get a warranty. Any quality reseller should offer warranties. End-user clients often get 90day to one year warranties on used Cisco (from the reseller). Make sure you get at least 90days.
Ask Questions. Find out if the reseller has Cisco certified techs and ask about recertification, licensing and manufacturer/reseller pre-sales and post-sales support policies.
Get Credit Terms (if you can). Corporations of any decent size should be able to negotiate payment terms of up to 30 days.This basically gives you the opportunity to try before you buy. If the equipment doesn’t meet your standards, you can return it without trying to recover your payment.

Who buys Used Cisco?

Fortune 500s and SMBs alike. Individuals, resellers, government agencies and manufacturers, too.

I’ve personally had countless conversations where somebody says they would never buy used, but then we talk about certain scenarios and they see a fit. Test environments, disaster recovery, training labs, trade shows, etc… Once they see the quality, support and savings, we normally flow into a production scenario from there.

And even those who don’t buy used Cisco end up finding value in having a Used Cisco reseller like Vibrant to sell their excess or decommissioned equipment to. We can offer you cash to save on your next investment and usually beat any trade-in offers from the manufacturer or VAR.

Please contact us if you have Networking, Storage or Server hardware to sell.

Should you consider used Cisco?

You have to decide for yourself, but it is definitely worth getting a quote or two so that you can make an informed decision. Some users start with training or demo hardware and then move to development or production units as they gain confidence in refurb quality and savings.

For more information, please email sales@vibrant.com or call 952-653-1700.

(this article was originally published at Network World’s Cisco Subnet and has been updated for 2013)

How IT Resellers Can Spot a Con

Sat, 26 Aug 2006 16:29:00 -0500

In Malcolm Gladwell’s book, Blink, experienced art curators could immediately sense a fake when looking at the Getty Museum’s prized Kouros statue based on their gut instinct alone. Likewise, senior sales reps can usually sense a scam in the opening lines of an e-mail or the beginning of a call.

Yesterday I spelled out 4 underrated scam techniques used against IT Resellers, and today I’ll list seven signs that should clue you in to steer clear.

1)Education doesn’t fit the buyer
IT Systems Administrators and Corporate Buyers typically have gone through a lengthy education, so it’s a definite red flag if a caller speaks in an uneducated manner or doesn’t use terminology that fits their supposed expertise. IT Buyers and Admins just “sound” a certain way that a scammer can’t easily imitate.

2) Spam-Mail Account
G-Mail, Hotmail, Yahoo and other free accounts are billboard-sized warning signs. If they do have a proper e-mail, check the URL to see how legit their site looks, and Google it to see if they have any cyber-references.

3) Corporate branch office in an apartment
Google Map the address and take a look at the satellite view.
You’re looking for corporate offices, not colonials.

4) Won’t sign a contract
Make sure that you spell everything out in your contract and have it signed by the buyer. Buyers hoping to short-pay you will be reluctant to sign off on standard terms and conditions. If you decide to go to court over a refusal to pay or a chargeback, you’re in a better position with a signed contract.

5) Pushy
A new client that is overly demanding from the start may be a warning signal. Take a step back and evaluate the scenario. A scammer knows he has limited time to pull the wool over your eyes.

6) Mismatched Items
The client wants an external tape drive that won’t work with the server which they’re requesting. When pressed, they usually don’t have an explanation.

7) Large increase in purchasing
Predicting that a client is about to go bankrupt is typically difficult, but if you see a sudden increase in purchase orders from a client, it might be time to cap the credit limit and re-evaluate their references.

Always remember to trust your gut instincts. And good luck out there.

7 Ways to Say “Used Router”

Thu, 24 Aug 2006 16:34:00 -0500

There are surely more than 7 ways to say “used router,” but these terms are the most frequently used (and sometimes confused).

The modifier here is “used.” Some are legit substitutes and others are poor representations or marketing puffery. Not just used for routers and switches, you will encounter these descriptors in the server and storage markets as well.

Used Router (the classic)
Cut and dry. A router was previously owned for any period of time, unpackaged and powered on. Perhaps it was used just once or maybe for years, but either way it qualifies as “used.” Marketers will sometimes pump these up as “barely,” “slightly” or “gently used.”
Refurbished Router (or refurb)
Often thrown around freely as a substitute for “used” (we’re guilty). In truth, only about 2% of the “used routers” that we ship are actually “refurbished.” The difference is that “refurbished” routers have been damaged and then fixed, while the used ones probably just tested as working and maybe needed some light dusting and cleaning.
Remanufactured Router (reman)
Offered by manufacturers such as Cisco who re-badge used equipment for resale. Also referred to as “factory refurbished.” Warranties are often refreshed, but pricing can be quite high.
Remarketed Router
This is a broader term than “used.” A remarketed router may have been used or even unused. It has been sold at least once in the past before its resale.
Gray Market Router (a blatant misuse)
A FUD term sometimes thrown around by new resellers when referring to used equipment. The gray market has to do with leaks in the global supply chain of new hardware. Used equipment has nothing to do with the gray market.
Pre-Owned Router
Marketing puffery that’s just a bit too reminiscent of used car sales for my taste.
Off-Lease Router
Leasing companies are a huge supplier to the used hardware market as they need to dispose of millions in used equipment per year. Asset Recovery companies and resellers like Vibrant purchase and remarket this hardware used. With that said, this term sometimes is thrown around as a general phrase when it doesn’t apply to the unique situation.