Why Hardware Sales Skills Don't Win in Manufacturing Software

The Shift from Hardware to Software

Manufacturing companies that traditionally sold machines, industrial automation products, or electronic components are facing a major shift to manufacturing software sales. For decades, the business model was built on selling tangible hardware such as panels, controllers, production equipment, often in one-time capital expenditure deals.

But customers are changing. They no longer want just a product; they want solutions that reduce downtime, improve efficiency, and integrate seamlessly into digital systems. That means software.

For VP Sales in manufacturing, this brings enormous opportunity: recurring revenue, higher margins, and deeper customer lock-in. But it also brings challenge: software sales requires a completely different approach.

Why Hardware Sales Skills Don’t Translate Easily to Software

Hardware sales are straightforward: products are visible, spec-driven, and tangible. You can demonstrate the size, the durability, or the speed. Customers compare on features, price, and delivery.

Software is very different: it’s intangible, process-driven, and recurring. You can’t touch it. Its value lies in reducing engineering hours, enabling remote service, or improving operator efficiency. These benefits show up in workflows and cost savings, not in product specs.

This shift means sales teams must learn to:

Address new stakeholders such as IT managers, digital transformation leads, and compliance officers.
Explain outcomes, not features.
Run demos that connect directly to real-world customer problems.

The Core Challenges in Manufacturing Software Sales

1. Moving from product pitching to consultative selling

Hardware sales are often about presenting specs and closing a deal. Software sales start with deeper discovery:

What slows down your engineering team?
How much does it cost when a technician has to travel for support?
Where do operator errors occur most often?

Salespeople must learn to uncover problems before positioning solutions.

2. Explaining value, not features

With hardware, value is obvious: “This panel is IP66 and sunlight-readable.”
With software, value is indirect: “This saves 20% engineering time and reduces site visits.”

Salespeople need a new vocabulary that connects to ROI, efficiency, and process improvement.

3. Structuring effective demos

Hardware demos are physical and simple.
Software demos go wrong when they become a “button tour.” Instead, they need storytelling: a scenario showing how the software saves time, prevents errors, or enables remote support.

4. Navigating new stakeholders

Software decisions involve IT, digital leads, and system architects. These roles care about cybersecurity, scalability, and integration. Many salespeople are not used to having these conversations, but they must adapt.

The Manufacturing Software Sales Maturity Roadmap

To help sales leaders benchmark where their teams stand, here is a maturity roadmap:

Level 1: Mentioning Software

Software is often bundled with hardware, and it is provided free of charge.
It is mentioned but not actively sold.
Risk: low adoption, no revenue impact.

Level 2: Selling Add-Ons

Software is sold separately, but as an add-on product.
Still feature-driven rather than outcome-driven.
Outcome: limited additional revenue, minimal strategic value.

Level 3: Consultative Selling

Sales team uncovers customer challenges through discovery.
They link software directly to solving workflow issues.
ROI and efficiency are central in the sales conversation.
Outcome: higher adoption, strong upsell potential.

Level 4: Solution Partnering

The company positions itself as a digital transformation partner.
Software drives conversations about predictive maintenance, energy efficiency, or integration with MES/ERP.
Outcome: recurring revenue, long-term contracts, strategic positioning.

What VP Sales Should Do Next

Sales leaders play a pivotal role in this transformation. Key actions include:

Invest in training: build consultative selling, ROI storytelling, and demo skills.
Equip with tools: demo playbooks, ROI calculators, and use case examples.
Adjust incentives: reward software sales and adoption, not only hardware volume.
Support with specialists: involve pre-sales engineers and customer success in deals.
Build confidence: help reps handle IT/security questions or know when to bring in experts.

Conclusion

Selling software in manufacturing is more than a side step; it’s a strategic transformation. VP Sales must lead this change by helping teams shift from product features to customer outcomes, from transactions to relationships, and from one-time deals to recurring value.

Companies that succeed won’t just sell machines; they’ll sell solutions that secure recurring revenue, strengthen partnerships, and drive digital transformation across manufacturing.

The change is happening. The real question is: will your sales team lead it, or lag?

We’re here to help, get in touch today!

Natasja Bax
Founder of The DemoScene
President of Great Demo! EMEA

Why Hardware Sales Skills Don’t Win in Manufacturing Software