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Index/Sales/Closing the Deal with Fexingo
Closing the Deal with Fexingo artwork

How One Rep Closed by Committing to a Timeline Penalty

Closing the Deal with Fexingo · 2026-06-19 · 8 min

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Topics in this episode

sales tactictimeline penalty clauseclose a dealimplementation delay rebatemoney-back guarantee vs penalty

Episode notes

Episode 61 of Closing the Deal with Fexingo: Lucas and Luna examine a specific sales tactic - the timeline penalty clause. When a mid-market SaaS rep offered to put a 10% rebate in the contract if the implementation was delayed beyond 60 days, it removed the buyer's risk and closed a $1.2 million annual deal. The hosts break down why a penalty works when a discount doesn't: it signals confidence in delivery, aligns incentives, and converts a promise into a guarantee. They contrast this with money-back guarantees (covered in prior episodes) and explore the psychology of 'pain now vs. pain later.' Lucas shares a counterexample where a penalty backfired due to vague timelines. The episode includes listener questions on when NOT to offer a penalty and how to frame it without sounding desperate. No filler - just one concrete tactic with real numbers and a clear framework for when to use it.

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