Germany is generally considered a difficult market to sell to. Combined with a sluggish economy, many international companies report that it has become harder than ever to generate revenue in Germany.
Despite the current challenges facing German industry, meaningful opportunities still exist – provided you know where to look and have something valuable to offer. History shows that even in difficult times, certain sectors continue to thrive. During Covid, for example, some industries performed remarkably well despite broader economic disruption.
From my observations at industry gatherings and through my work with international, tech‑driven firms selling into Germany, decision‑making processes are currently slower than in better times – and Germans are not exactly known for making fast decisions even under ideal circumstances. Today, sales cycles can be prolonged.
Current market opportunities in Germany: Know your value
While budgets may be tighter, this can actually work in your favor if you present a compelling and well-thought-out offer. German companies typically do not simply choose the cheapest option. Investments are often driven by a shortage of skilled workers rather than pure ROI calculations. Demonstrating how a collaboration can unlock new revenue streams or relieve internal capacity constraints can therefore be highly effective.
Many companies entering the German market start by downloading company lists and approaching large, well-known names such as BMW or Bosch with generic messages. This approach often fails because it overlooks the German business mindset. These accounts are heavily targeted, and without strong local connections, access is limited. At the same time, smaller firms are frequently overlooked. Focusing on these smaller accounts and building a solid network can create valuable opportunities. There is little risk of “missing out” on large deals by starting small – German companies tend to anyway begin with pilot projects or limited engagements before awarding larger contracts.
This leads to a fundamental question: why should a German company consider partnering with you? Depending on where you are based, factors such as language barriers, time zone differences, and cultural distance all come into play and must be acknowledged openly.
What Germans look for in a B2B technology partner
One important aspect to keep in mind is that Germans tend to be highly risk-averse. Before committing to a solution or partnership, they usually prefer detailed analyses and structured risk assessments rather than relying on intuition or taking a leap of faith.
In this article, I outline what German companies typically look for in a supplier or partner, with the goal of helping you position yourself accordingly. If you need a sparring partner with hands-on experience in German business culture and B2B sales – particularly in tech-related industries – you are of course welcome to reach out.
German supplier selection criteria: background and perspective
The German supplier selection criteria discussed here are based on my experience from numerous projects supporting international companies selling into Germany, and are supported by theoretical frameworks from the supply chain management course I teach at a private university in Munich
Naturally, every target client has its own set of criteria at both the corporate and individual level. These are shaped by the company’s situation, internal challenges, urgency, prior experiences, and personal biases. How German companies evaluate suppliers also depends heavily on the decision-makers’ current context and personal perspective.
Below, I introduce a set of commonly observed criteria. To help my clients assess their position and identify both strengths and gaps, I work with hypotheses for best- and worst-case scenarios – assuming you are perceived either as a trusted partner or as a higher-risk option. All of this is viewed through what I would call a “typical German” lens.
Two tools I find particularly useful in this context are the Preference Matrix and Utility Analysis.
How German companies evaluate suppliers: criteria and risks
Across the sales cycle, German B2B buyers may evaluate suppliers against a broad set of criteria. These criteria often evolve as discussions progress and risks are assessed in more detail.
Common criteria in the sales cycle phase: client information gathering
- Proven track record in the industry
- Environmental responsibility and sustainability initiatives
- Innovation and investment in R&D
- Scalability and flexibility of services
- Technical expertise
- Reputation, references, and case studies
- Access to market insights and trends
- Risk management (including geopolitical and operational risks)
- Financial health and long-term stability
- Understanding of local industry standards and regulations
Common criteria in the sales cycle phase: initial talks
- Cultural fit and alignment of values
- Ease of doing business and administrative processes
- Accessibility across time zones
- Speed and quality of responses
- Communication style, including language and local nuance
Common criteria in the sales cycle phase: project understanding
- Customization and flexibility
- Integration capabilities with existing systems
Common criteria in the sales cycle phase: quote
- Cost structure, transparency, and total cost of ownership (TCO)
Common criteria in the sales cycle phase: closure and delivery
- Support and maintenance capabilities
- Performance metrics and SLAs
- Training and onboarding
Common criteria in the sales cycle phase: ongoing collaboration and evaluation
- Partnership mindset and collaboration approach
- User experience and interface quality
- Ongoing risk management
Why discussions with German B2B clients often stall
When they come to me, many of my clients report that discussions with potential German customers sometimes stall after months of interaction. Typical reasons cited include concerns that the supplier’s team is too small, the lack of a physical presence in Germany, or other perceived risk factors. While these may occasionally be excuses, they underline how important it is to understand early on what German companies truly value and how they compare suppliers.
A structured approach can help guide these discussions or be used internally based on client feedback. If your prospect is willing to share their own supplier evaluation template, this can provide particularly valuable insight.
How using a preference matrix for German B2B sales can help
When I refer to a preference matrix, I mean a structured method for prioritizing decision criteria. Each criterion a buyer considers relevant is systematically compared against every other criterion.
If, for example, your potential client in Germany considers Technical Expertise more important than Reputation and Market Insights, Technical Expertise receives a score of 2, while Reputation and Market Insights receive a score of 0. If two criteria are viewed as equally important, each receives a score of 1. By summing the scores for each row, the relative weight of each criterion becomes visible, clarifying its importance in the decision-making process.
If you perform strongly in an area the potential German client values highly, it is critical to communicate this clearly. At the same time, this allows you to place less emphasis on areas that matter less to that particular buyer. Especially when cultural assumptions and biases are taken into account, the preference matrix can be a powerful tool for improving your chances of success.
How to position your tech company for the German market
The next step is to rate yourself – and your competitors – against the weighted criteria. By feeding your assumed scores into a comparative table (often referred to as a utility analysis), you can evaluate multiple providers side by side based on what truly matters to the (German) customer.
I find this approach particularly useful for adopting the customer’s perspective. It challenges standard competitor analyses and helps international companies better understand how they can sell to German B2B clients by focusing on relevance rather than assumptions.
If you are serious about entering or expanding in Germany, this structured, customer-centric approach can significantly improve both positioning and outcomes.
Need help positioning your tech company for the German market?
If you want to understand what German B2B clients truly value – and how you are likely being evaluated compared to competitors – I offer sparring and hands‑on support for international tech companies selling in Germany.
Connect with me on LinkedIn or e-mail me to discuss your situation and identify the criteria that really matter to your target clients.