CISCO PRICE OVERVIEW
Cisco sells one of the most expensive solutions on the market, commanding a premium over comparable options. We do not deny that Cisco is an expensive solution, but that does not mean costs cannot be reduced. In this document we will dive into competitive discounting for Cisco products and offer solutions for customers to mitigate Cisco pricing risk.
This Cisco Pricing report will focus on the following topics:
1. Cisco Pricing Statistics
How does Cisco price in comparison to their competition? We detail the price premium Cisco has over their closest competitors and other pricing statistics such as price variance and gross margin per license sold. This section sets up the document to illustrate how successful Cisco is at their pricing strategy, consistently pricing customers at premiums and maximizing their revenue per transaction.
2. Cisco Pricing and Discount Percentages
Provided in this section is a detailed table highlighting the average Cisco pricing across all major Cisco product families. This table provides transparency into the price ranges we have observed over the last year, exemplifying the large range in discounting offered to customers. Though many customers may find themselves in these ranges, this section explains that the best deals include discounting that exceed the highlighted range, and with proper planning and negotiating leverage any customer can improve their Cisco price.
3. Cisco Pricing Tactics and Risks
Cisco uses a number of pricing tactics to ensure they win deals, maximize margin, and increase costs for the customer. This section details two unique Cisco tactics used in their licensing model that can present pricing-related risk for customers:
Add-on Rate Premiums: Cisco enforces premiums on additional and net new product purchased in comparison to historical discounts. This section lists out methods and preferred agreement types that will help customers obtain Cisco price holds that will be competitive in comparison to current precedent rates.
Cisco Renewal Increases: At renewal, Cisco will work to eliminate your discounting and enforce list price changes that will ultimately increase your Cisco cost. We detail the methods Cisco uses to increase your price and ways that you can prevent them from happening in your deal.
4. Cisco Price Incentives
In the last section of this Cisco pricing report, we detail the top motivator for Cisco sales reps. If a customer understands the incentives for a Cisco rep, they will have all the tools needed to form a negotiation strategy for the Cisco purchase. We dive into two deal scenarios that shift buying power to the customer, ultimately motivating the Cisco sales rep to price more aggressively to win over new business.
To increase your chances of achieving higher Cisco discounting and lower costs, this document will aid you in identifying competitive pricing, Cisco pricing strategy, and Cisco sales rep incentives to facilitate movement on your bottom line. For additional assistance on your Cisco purchase, review some of the other ClearEdge resources listed below to help plan your strategy and mitigate risk.