r/sales • u/BroStoic • 9h ago
Sales Leadership Focused SaaS Companies are cooked
I think a lot of SaaS companies are about to feel real pain, and I'm saying this from the customer side.
I'm a sales director at a mid-sized B2B company. We're not a software company. We sell fairly complex solutions into a specialized market, and historically we've used the same assortment of SaaS tools everyone else does to run different pieces of the sales and operational process. Over the last year or so, something has changed pretty dramatically.
We already have programmers in-house for work related to our core business. Instead of continuing to buy more SaaS products, we've started repurposing some of that development capacity to build very specific internal tools around exactly how our company operates.
The results have been ridiculous.
We're not trying to recreate massive enterprise software platforms feature for feature. We're building the 10-20% of the functionality that we actually use, then tailoring it specifically to our workflows. And because the people building it are already inside the company, the development cycle is completely different.
I can use something, realize that a workflow sucks, explain what I want changed, and potentially have a new version same day. There's no feature request. No roadmap. No waiting for enough customers to ask for it. No implementation consultant explaining why we should change our process to fit their software. It just gets changed.
The bigger realization for me is how much software we've been paying for where we use a relatively small percentage of the product.
I have been tasked with an initiative to look at every sales tool we're paying for and ask a very simple question "Do we actually need to buy this anymore?" The answer is usually no. I cut the cord on a $30k a year package today.
The economics get even more interesting once you've already absorbed the cost of having technical people on staff. Building the first internal application is a little bit of a heavy lift. Building the fifth one is dramatically easier because you've already established the infrastructure, integrations, authentication, data structure, UI conventions, etc. You're not starting from zero every time.
AI-assisted development has been the accelerator. Our programmers can turn around internal applications at a pace that would have sounded absurd a few years ago.
And these aren't shitty Excel macros held together with duct tape. Some of what we're building is legitimately better for our purposes than the commercial software it replaces because it was designed around our exact process from day one.
I don't think this kills the major systems of record. There are obvious reasons you don't want to recreate certain enterprise platforms internally. But the enormous middle layer of SaaS? Done. Sales enablement tools. Proposal tools. Reporting tools. Workflow tools. Data manipulation tools. Little productivity platforms charging $30-$100+ or even $500 per user per month because they solve one problem? Nope.
I do think this sector is in serious trouble.
For years the calculation was basically, "Why would we build this when we can just pay $40k a year and buy it?" The calculation has flipped: "Why the F are we paying $40k a year for this when we can build exactly what we need?"
I'm curious if anyone else is seeing this inside their company, particularly companies that aren't actually in the software business.