Myth Buster: Debunking the 3 Biggest Myths About Building vs. Buying Software
In the high-stakes world of retail energy, the decision to build software internally or buy an off-the-shelf solution is fraught with myths. These myths often cloud judgment and lead to costly missteps. Let’s tackle three persistent misconceptions and uncover the truth behind building versus buying.
Myth #1: Building Internally Will Give Me a Competitive Advantage
Reality: For software focused on sales operations and commissions, leveraging shared knowledge across multiple vendors produces a far superior product.
When retail energy suppliers choose to build internally, they risk repeating mistakes that others have already solved. Why reinvent the wheel? Vendors like Enerex draw on insights from working with numerous clients, ensuring their solutions are informed by collective experience and industry best practices.
Moreover, a supplier’s key differentiator is not in the mechanics of their commissions or sales software. It lies in how they price and manage risk. By outsourcing software needs to a specialized SaaS provider, suppliers can focus on creating robust internal processes that truly drive competitive advantage.
Myth #2: Building Internally Will Increase My Company’s Valuation
Reality: Building custom software doesn’t inherently boost a company’s valuation—and it may even detract from it.
Studies show that buyers value scalability and predictable operations more than custom-built systems. For example, a McKinsey survey highlights that over 70% of acquirers prioritize operational efficiency and market standardization when assessing company value.
When a platform already exists that serves most market participants, acquirers are unlikely to reward a bespoke system that requires unique maintenance. Instead, they value companies that have adopted proven, scalable solutions. In short, licensing a product like Enerex signals buyers that you are focused on efficiency, adaptability, and leveraging best-in-class tools—not getting bogged down in custom IT builds.
Myth #3: Building Internally Will Give Me More Control Over the Final Product
Reality: While building internally seems like the ultimate way to control a product, it often puts the power in the hands of the developers—not the business leaders.
In contrast, a well-chosen SaaS partner offers significant influence over the product. Companies like Enerex have:
- Robust Product Roadmaps that align with industry needs and customer feedback.
- Comprehensive Knowledge Bases to guide users on maximizing value.
- Dedicated Customer Success Teams to advocate for client requirements and ensure ongoing satisfaction.
SaaS providers rely on customer retention and Annual Recurring Revenue (ARR) for their valuations, creating a natural incentive to prioritize client needs. With a SaaS model, you gain influence without the logistical and financial burdens of managing an internal development team.
Myth #4 (Bonus): Building Internally Is Cheaper Than Buying
This myth deserves an encore mention. As our previous blog post outlined, building internally is rarely cheaper in the long run. Between developer salaries, subscriptions, hosting, and the opportunity cost of delayed market entry, the price tag for building internally balloons quickly. Compare that to buying a SaaS solution like Enerex, which offers predictable costs, continuous improvements, and faster deployment.
The Verdict
Building may feel like the ultimate way to control your destiny, but when you unpack the myths, the truth is clear: buying a specialized, off-the-shelf solution is the smarter, faster, and more cost-effective path.
Still not convinced? Read our previous post, “Build vs. Buy: The Smart Choice for Retail Energy Suppliers,” to dive deeper into the costs and benefits of each approach. Don’t let myths back your business—make informed decisions and focus on what drives value.
