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HUGE price Differance between vendors

By James Schroer ·
I've run across something that has caught my attention and I'm just wondering if anyone else has ran across anything similar. I'm looking at buying a new Cisco switch and as usually I get a few quotes to keep everyone honest. BUT as I start getting the quotes in I start to notice that on a switch that MSRPs for about $4000 the prices are over $300 different between the places. Which really through me for a loop. I talked to a few of the vendors that were at the higher range and they said that it is impossible to be that big of a difference and they can't even get close to that price, they even said their cost is higher then that. The funny thing is that they have always been competitive with other Cisco products. Has anyone else seen this? I even talked to someone directly at Cisco and told him the differance and he said that's not right they must be quoting you on different products. But they are not. I've heard that there is a Cisco gray market out there that's why it really worries me. And if not a gray market they why are those other people so high? Why would they even sell Cisco if the can't be competitive? Thoughts?

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by jdmercha In reply to HUGE price Differance bet ...

Are you sure that the less expensive ones are not actually used equipment? Are the lower priced vendors actually authorized Cisco dealers?

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No Used or Refurbished

by James Schroer In reply to Used/Refurbished

They all were on NEW switches and ALL the vendors are authorized Cisco dealers.

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Probably gray

by Choppit In reply to HUGE price Differance bet ...

I've come across this before and suspect that you are being offered gray market product. If you ask the higher priced vendors how their competitors are able to offer low prices they'll probably point to gray market kit. If you ask the low priced vendors the same, they're likely to be evasive. At the end of the day you need to decide if you're willing to run the risk of being refused manufacturer support. The margins on hardware can be as low as 2%, so it doesn't surprise me that many vendors can't compete.

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by dafe2 In reply to HUGE price Differance bet ...

If it where me.......I guess I'd ask CISCO to recommend two (or three) dealers near you.

I don't think it's worth your time. The higher price guys are likely just honest dealers that appreciate quality (and) work hard for a meager profit margin. I am NOT suggesting that their competitors aren't, but you know what they say about ducks.

Pretty smart to question it

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