Sales Engineer Pro Tips for Navigating the Secondary Market

When it comes to technology, everyone wants the hot new item, but the pretty new things aren’t always in your budget. This is certainly true in the network hardware world. Naturally, the bigger original equipment manufacturers (OEMs) are going to push the newest models, but they may include bells and whistles you don’t want or need.

This is where the secondary market comes into play. The big players have lambasted the secondary market, calling it the grey market, and they use fear to dissuade people from purchasing used equipment.

We’re here to tell you that fear is unfounded. Buying used equipment will save you money on more than just parts. Let’s dive in. 

What is the Secondary Market?

The secondary market is a broker’s world where people can buy and sell pre-owned network hardware. This is the best place to turn when you’re looking for older-generation hardware or an upgrade to your current hardware that isn’t the newest version on the market.

The secondary market has gotten a bad rep from OEMs because they say you don’t know where the hardware comes from, what condition it’s in, if it’s authentic, and that it’s unsupported, among other concerns. 

While there may be some less reputable companies selling on the secondary market, if you do your research and check their facts, you’ll find what you’re looking for at a much lower price. 

Secondary Market Pros

• Variety: With a bigger inventory, more products and generations are available.
• Cost-effective: You pay roughly 50% less than what you would pay for new equipment.
• Peace of mind: Find better warranties, testing, and support, as well as lower failure rates.
• Quick Turnaround: Expect quick shipping, especially considering supply chain shortages.

Secondary Market Myths

• OEM support: There’s a fear that if you don’t buy directly through an OEM channel you won’t receive maintenance on the product. A reputable supplier will provide support and maintenance.
• IOS updates limited: Naturally, you’ll need access to IOS updates, but there’s fear that you won’t get it if you don’t buy directly from an OEM. We help our customers navigate the need or lack thereof for IOS updates within certain segments of the network. 
• Licensing: Big OEMs tell end-users that if they buy a network switch outside of Cisco's channel, it will not be properly licensed for use — inferring that if they use the "unlicensed" switch, they are potentially breaking the law and violating Cisco's EULA (End User License Agreement). This isn't really true. Historically, the courts side with the secondary market.
• Counterfeit: Another fear is buying counterfeit hardware. See our tips below for sussing out shady sellers and equipment. We use Cisco’s Identify Counterfeit and Pirated Products guidelines.

If you’re still unsure about purchasing equipment, a reputable secondary market seller should be able to explain their policies to you. If they cannot, don’t work with them.

The Role Of SEs in a Network Decision-Makers' World

A sales engineer (SE) is someone who understands technology on a deeper level than your average salesperson. They have experience with technology, understand its qualities and limitations, and are more qualified to make recommendations based on your needs. 

When you work with a reputable secondary market seller like Edgeium, you work with SEs with extensive industry knowledge of nearly every OEM, not just the big players. You can feel confident you’re buying hardware based on your actual business and growth requirements — not just the newest product. It’s also backed by an industry-leading warranty. 

Bottom line: A good SE should be a trusted confidant, someone you rely on as an extension of your team.

"Edgeium's fast turnaround on quotes, quick shipping, and follow-up allows me to focus on my job - not the when and how of logistics of gear. They work easily with my team and offer technical expertise when I don't have the time to research parts and compatibility. That alone make my job more efficient and easier." 
-Senior Network Engineer, Top 5 Transportation Company

Why Are SEs So Hard to Find in the Secondary Market?

Sales engineers exist in the secondary market, but why are they so hard to find? Many salespeople don’t have engineering backgrounds or experience with products — in fact, most of them are simply order-takers. They aren’t able to make recommendations about any solutions, much less solutions from multiple vendors. Oftentimes, they have limited knowledge of one product — the product they push — and they don’t offer choices. 

So what happens is this: The sales rep simply quotes what the customer has provided without the necessary knowledge of what is currently installed in their network. Without knowing what solution these devices are trying to solve, there may be unintended consequences. A customer device may not do what it was expected to do, or worse yet, it may not be compatible with other devices that lie upstream or downstream. This can put a customer in a bind while also risking network downtime. 

A sales engineer knows what the customer is trying to accomplish, makes the necessary recommendations, and includes all parts and accessories to complete the solution. 

Tips for Navigating the Secondary Market

Stepping into the unknown feels unsettling, but it can be a rewarding experience for you, your department, and your budget. Here are some tips for navigating the secondary market.

What to Look For

• Experience: Companies that have been in the game for a while. Experience matters.
• Testing and warranties: The keywords here are “advanced replacement, lifetime warranty.” While this should be the industry standard, many of the lower-quality providers don’t offer it. 
• Support and maintenance: A reputable company will support new-to-you hardware once it’s in your network. 
• Packaging: Ask your provider how they ship hardware. Are they using custom-designed packaging specifically built for each device ensuring it arrives safely to your destination, or are they using bubble wrap and peanuts, offering limited to no protection while your devices are in transit? Reliable secondary market vendors have spent time and money to guarantee your product arrives safely and in clean, professional-looking packaging similar to what you receive from the large OEMs.

What to Avoid

• Limited lifetime warranties: The problem with these warranties is that they have an unknown termination date. 
• Shady return policies: A company should bend over backward to get you back online. Read their return policies to determine whether a faulty product will cost you more than it’s worth.
• Lack of experience: How long have their senior leaders been in the industry? Experience matters, and you should inquire how long their management team has been in the business. The secondary market has seen many changes in 30 years. Make sure you are working with a company that can help you navigate these changes in an evolving marketplace.

Choose Edgeium in the Secondary Market

If you’re heading to the secondary market for network equipment, work with a vendor that empowers you to choose the right equipment for your business needs and not a solution that makes them more money. 

When you work with Edgeium, you get access to a vast inventory of tested products backed by a lifetime warranty. 98% of our inventory comes directly from an end-user relationship. In the event that you receive a faulty product (which doesn’t happen often — our failure rate last year was less than 1%), we will ship you a replacement product that same day, no questions asked.

You’re also guaranteed:

• Access to industry experts with over 20 years of experience
• The highest level of support for all products and quick ticket resolution
• Secure shipping with custom die-cut foam packaging
• A sales engineer who lets your business needs drive decisions to hardware, not the latest and greatest product
• The ability to sell your old equipment and bank the money for use on future equipment 

Reduce IT budget maintenance spend with Edgeium’s CovrEDGE — a third-party alternative to OEM IT maintenance.