As an expert advisory firm with extensive domain expertise in the commodity and maritime industry, Tradavex has seen many tech companies struggle to break into this complex field.

Here are the top 5 mistakes tech companies make when trying to sell into this industry, and how you can avoid them:

1) Tech Companies Build What Clients Want

The Mistake: At first glance, building what clients ask for seems like a good strategy. But clients often don't know what they truly need. As Henry Ford allegedly said, if he had asked customers what they wanted, they would have replied, "a faster horse."

The Solution: Innovate beyond articulated demands. Focus on uncovering what Geroski called "inchoate demand”: needs that clients haven't yet expressed or even realised. This requires deep industry knowledge and the ability to foresee how new technologies can transform markets.

Next Step: Invest in understanding the industry’s workflows and pain points, rather than taking instruction from separate clients.

2) Tech Companies Don’t Build What Clients Need

The Mistake: Many tech companies lack the domain expertise required to understand the true needs of their clients. They assume that the tech gods of “Efficiency” and “Transparency” are enough.

The Solution: Gain real domain expertise. Understanding the intricacies of the industry is crucial. For instance, shipowners often benefit from market inefficiencies that might seem counterintuitive to outsiders. Higher freight rates from market disruptions can be lucrative. So shipowners only really want to be more efficient than their competitors in a slightly inefficient market.

Next Step: Partner with industry experts to ensure your tools and platforms address the real needs of your clients. Understand the economic drivers and operational challenges unique to the commodities and maritime sector.

3) Tech Companies Often Ignore the Commercial Time Lag

The Mistake: Real-time data can be beneficial. But tech companies often overlook the timing and usability of this information. Clients need to make commercial decisions sometimes months in advance. So real-time data is already “priced in” to the market by the time you see it on ship tracking software. Also, frequent, untracked revisions can make the historical dataset unreliable. 

The Solution: Understand the market dynamics and the timing of business decisions. Changes to historical data need to be tracked and reliable to inform future decisions.

Next Step: Develop creative ways to narrow the commercial time lag. Ensure your data collection and storage methods are robust to avoid inconsistencies.

4) Tech Companies Focus Too Much on What They Build

The Mistake: Overemphasis on the product itself, assuming the best software will naturally attract clients.

The Solution: Leverage ecosystems and partnerships. Many successful companies thrive not because of their superior products, but through strategic partnerships and understanding industry networks.

Next Step: Focus on building strong relationships within the industry. Collaborate with established players and integrate your solutions into broader ecosystems to enhance value.

5) Tech Companies Don’t Know How to Price Their Offering

The Mistake: Without sufficient domain expertise, tech companies struggle to understand how their clients derive value from their products. An unclear ROI leads to confusing pricing structures. This has a negative impact on the success of the sales team.

The Solution: Analyse the business outcomes your clients can achieve with your solutions. Understand the value your product adds and price accordingly.

Next Step: Develop a pricing strategy that reflects the value delivered. Articulate a clear ROI to your clients, demonstrating how your solution will impact their bottom line.

Every tech company is unique. But the most successful ones in the commodity and maritime industry strike a balance between technical innovation and deep industry insight. By avoiding these common mistakes and focusing on the true needs of your clients, you can grow as a business that drives real value.