How do I respond to 'we're going to build this internally'?

Don't panic-pitch. Instead: (1) Diagnose why (capability, cost, speed?), (2) Show the time cost ("your engineers spend 6 months building = $X cost vs our $Y annual fee"), (3) Offer a hybrid (we handle X, you own Y), (4) Have a follow-up ("let's revisit in 6 months when timelines change").

"Build vs. Buy" Conversation: How to Respond

This objection sounds like a loss, but it's often a negotiation tactic or a genuine capability question. Respond right and you can win.

FIRST: Diagnose WHY

Don't assume "we're building" means you lost. Ask:

• "That's great—what's driving that decision?"
• "Which parts are you thinking of building?"
• "Are you building the whole thing or integrating with an existing platform?"

Their answer tells you how serious they are:

THE TCO PITCH (when cost is the objection):

Your solution: $50K/year Their build plan: 2 engineers × 6 months = $200K cost + 6 months delay

Pitch: "Let me show you the numbers. If 2 of your engineers build this:

• 6 months salary cost: ~$200K
• Opportunity cost (what they could ship instead): ~$300K revenue impact
• Ongoing maintenance: ~$50K/year (1 engineer part-time)

Vs our solution: $50K/year, live in 2 weeks, support included.

You save $400K in year 1, plus 6 months of engineering velocity on higher-impact projects."

THE HYBRID PLAY (win part of the deal):

They want to build some, you provide the rest.

Buyer: "We're building the custom ingestion layer, but we need reporting."

You: "Perfect. You build the ingestion, we handle reporting, visualization, and dashboards. That way your team owns the data flow and we own the insights layer. Best of both worlds."

Result: You win a $30K/year reporting module (not the full $80K deal, but something).

THE TIMELINE REALITY CHECK:

Most "we're building internally" projects get delayed or abandoned.

OFFER A FALLBACK:

"Build fast, we'll be here when you're ready."

Actions:

• Offer a free 90-day pilot while they evaluate (removes risk for them)
• Check in at 3 months (reality hits hard)
• When their build is delayed, you're already embedded and they know your solution works
• Move to paid at month 4-5

WHAT NOT TO DO:

• Don't say "nobody can build this as well as we can" (they'll try to prove you wrong)
• Don't discount heavily to win (teaches them you don't believe in your value)
• Don't disappear (they'll forget about you)
• Don't act desperate (this is a common objection, handle it cool)

THE FOLLOW-UP CADENCE:

• Month 1: "How is the build going? Hit any blockers?"
• Month 3: "Still on track? Happy to chat if you hit engineering constraints."
• Month 5-6: "Timelines often shift—let's reconnect. Here's our latest pricing."

REAL EXAMPLES:

LOST: Rep doesn't handle it

• Buyer: "We're building it internally."
• Rep: "OK, good luck!" (walks away)
• Reality: 12 months later, build is abandoned, buyer has moved on

WON: Rep offers a hybrid

• Buyer: "We're building our own CRM."
• Rep: "That makes sense. Where do you see value in ownership?"
• Buyer: "We want our data architecture, but the UI/workflow is standard."
• Rep: "Here's what I'm thinking: you own the data layer, we own the front-end. You get control + speed, we support the UX."
• Result: Hybrid deal, they buy the reporting/UI layer ($40K), build the data model themselves.

WON: Rep offers a pilot

• Buyer: "We're evaluating building vs buying."
• Rep: "Smart decision. Here's a free 90-day pilot. That gives you real data on build vs buy cost."
• Result: Pilot shows the build is harder than expected, they convert at month 4.

BENCHMARK DATA (Building vs Buying):

Pavilion research: 68% of "we're building" deals convert within 12 months (once they realize the scope). 32% actually build and go dark.

Your job: be the option they come back to when building gets hard.

TAGS: build-vs-buy, objection-handling, competitive-positioning, deal-recovery, customer-insights