Price Increases

[BlakeRichardson]

I almost fell off my chair this morning due to price increases of Meraki equipment, late last year I prepare my 2022 budget which included a bunch of MS, MV and potential MR units. 

I have just asked for the MS pricing to be updated so that I can submit current pricing for approval rather than 4-5 month old pricing ( Budget was drawn up in Oct 2021). I had to look twice and ask the supplier to double check with the distributor when some switches pricing had increased by 58%

Usually I allow for a 10% price increase in my budget but I was surprised to see pricing increase by such a large amount, I am aware supply issues, currency etc all contribute to the pricing but this just seems nuts.

Licensing also seems to have increased by over 50%  

I haven't compared this with other vendors because we only purchase Meraki Switches and CCTV but such a large increase in a short about of time worries me that Meraki products are no longer going to be competitive / affordable. 

Rant over 🤐

[BrandonS]

I know there have been a few increases recently, but that does seem more than I thought.  I have not calculated anything specific though.  What region are you in and I take it you are not a Cisco partner, right?

If you want to share or DM me any specific part numbers I could check and give you a second opinion on that increase percent if you want.

[Ryan_Miles]

I'm not aware of anything going up 58%. I'll leave it at that.

Meraki has been subject to increases just like almost everything from Cisco.

[BlakeRichardson]

@BrandonS Located in Asia Pacfic, End user not a partner.

@Ryan_Miles I have quotes that show two very different amounts, I suspect its to do with normal price increases but also the education discount being reduced but the unit price for one piece of hardware was a 58% increase.

[PhilipDAth]

From memory, there have been two price increases since October 2021 till now.  Yes, some products have gone up 50%.  There is a severe parts shortage, and everyone is competing for that limited supply - the highest bidder wins.  Also, shipping costs have gone up incredibly (nearly 10x in some cases).

The bigger problem is not the price, but actually getting the kit.  For example, right now, the lead times on some common items (for New Zealand) is:

MX68, 250 days

MS120-24P, 235 days

MV22X, 240 days

For my customers, I have had them forward order everything for the whole year in one go, so they can be confident of kit landing for projects starting later in the year.  We are now reaching the point that if customers don't order their kit ASAP - they may not get it this year.

I would say if you delay ordering just 7 more days, you may not get some items this year now.  It is that close.

[AutomationDude]

Does the parts shortage justify the increase for licenses though?