Cisco Price Increase Effective August 7th 2021
Q: Why is Cisco raising prices on certain products?
Reviewing and adjusting prices of products is a normal process for Cisco and others in the industry. In this case, market dynamics, including component cost, freight charges, and semiconductor availability are reflected in pricing for certain hardware products beginning in August 2021.
Q: Will Cisco lower prices if conditions improve?
We are working aggressively with our suppliers continually to provide the best value for our customers. Any changes to prices in the future will be communicated.
Q: Is Cisco profiting from this price increase?
No. Prices reflect component cost and availability and related manufacturing and shipping costs to Cisco.
Q: What percentage of products have an increased price?
Approximately 10% of products have a price increase beginning in August.
Q: Will valid quotes be honored if approved before the price increases on an impacted product?
A valid quote is an approved quote which has been properly configured, has product availability, the product is not EOL, and has not been re-opened. It is one where it has been approved from a pricing perspective and is therefore Net Price Protected for 30 days from date of approval. If the quote is re-opened, changed, or reconfigured it will be requoted at the new prices and will be put through the discount approval process again. The 30-day Net Price Protection starts again at the point the quote is reapproved and protects the new net price for 30 days. Cisco will be absorbing the increased costs for current backlog product, as well as those approved quotes that are within the 30-day Net Price Protection.
Q: Is this isolated to a certain geography or region?
These changes are being instituted globally.
Q: Do you have a line of sight into when conditions will improve?
The situation with the global semiconductor issue remains incredibly fluid. We anticipate that our industry will face these challenges well into 2022. Cisco is working aggressively with our suppliers and manufacturing partners to get products built and shipped.
Q: Are Cisco’s pricing policies changing?
No. Our standard 30-day price protection policy is not changing, and standard 30-day price protection will apply on existing quotes dated prior to August 7.
Q: Will customers who have a quote prior to August 7, 2021 be required to pay increased prices?
Standard 30-day Net Price Protection will apply on existing quotes dated prior to August 7th. For quotes that are valid for longer than 30 days, the quote will be repriced if not ordered within the 30-day price protection period.
Q. Will customers who submit an order prior to August 7, 2021 be required to pay increased prices?
No. Repricing does not occur once an order has been submitted.
Q. What happens if a quote is about to expire? Can we extend it?
Quotes may be extended, but the system will use the new list price, and the quote may have to go through the approval process again.