Latest / Closing the Deal with Fexingo: Sales, Negotiation, and Revenue Conversations for Operators / How One Sales Rep Won a Deal by Admitting a Mistake
Transcript
- Lucas: So there's this sales rep — we'll call her Jenna — who's in the final stages of a six-figure SaaS deal. The prospect is a mid-market logistics company, and everything's going well. Demos are solid, pricing is in range, the timeline works. Luna: Sounds like a slam dunk. What went wrong? Lucas: Jenna sends over the proposal — and then realizes she accidentally included a feature that doesn't exist yet. It's in development, but it's not live, and the proposal says 'available immediately.' The prospect's IT team spots it within hours. Luna: Oh, that's a nightmare. Did she try to cover it up? Lucas: She didn't. She called the prospect, said: 'I made an error. That feature is on our roadmap, but it's not available at launch. I need to correct the proposal. Here's what we can deliver today, here's the timeline for that feature, and if that changes your decision, I completely understand.' Luna: And they walked, right? Lucas: Actually, no. They signed. The prospect told her later: 'We knew you'd made a mistake, but we wanted to see how you handled it. Most reps would have tried to spin it or hide it. You didn't. That earned our trust.' Luna: That's a fascinating counterpoint to the usual sales advice, which is always 'project confidence, never show weakness.' Lucas: Right. And there's actually research backing this up. A study from Harvard Business School on trust repair found that when a professional admits a mistake quickly and takes full responsibility — without deflecting — trust can actually increase compared to before the error. They call it the 'vulnerability effect.' Luna: But there's a line, right? Admitting a mistake is different from apologizing prematurely or groveling. Lucas: Exactly. The key distinction is control. Jenna admitted an error that was factual — a feature wasn't ready. She didn't apologize for the company's pricing, or for a policy she couldn't change. She owned something she could fix immediately. That's the sweet spot. Luna: So the rule is: admit mistakes that are about your own actions, not about systemic issues you can't control. Lucas: That's a good framing. And timing matters too. The worst time to admit a mistake is right after the prospect has raised an objection. That looks like you're caving. The best time is before they even bring it up — that's what Jenna did. She proactively called before the IT team could escalate it. Luna: That proactive move also signals that you're on the same team as the buyer. You're not hiding things from them. Lucas: And it changed the dynamic. Instead of a confrontation, it became a collaborative problem-solving conversation. 'Here's what I got wrong, here's the fix, does this still work for you?' That's a much stronger negotiating position than being defensive. Luna: I'm curious — have you seen this backfire? When does admitting a mistake hurt you? Lucas: Yeah, it can backfire if the mistake is about something fundamental — like you misrepresented the product's core capability. If the error undermines the entire value proposition, no amount of honesty saves the deal. Also, if you make the same mistake twice, it looks like incompetence, not honesty. Luna: So it's a one-time tool, not a habit. Lucas: Right. And you also need to consider the buyer's personality. Some buyers see any mistake as a red flag. They're risk-averse. In that case, you might need to overcompensate with extra guarantees or references. But in my experience, most B2B buyers are more forgiving than salespeople assume. Luna: There's a parallel here to what we talked about in episode 16 — the one word that kills your negotiating position. 'Sorry' can be that word if it's used too early or too often. But Jenna didn't say 'I'm sorry.' She said 'I made an error.' That's different. Lucas: Yes. She took responsibility without apologizing for the relationship itself. That's a subtle but important distinction. The word 'sorry' can trigger a power shift if used prematurely. But owning a factual mistake — that can actually enhance your credibility. Luna: And the prospect didn't even ask for a discount. They just accepted the corrected proposal. Lucas: That's another lesson. When you admit a mistake, don't offer a discount unless the mistake cost the buyer something. Jenna's error didn't cost them anything — they hadn't signed yet. So offering a discount would have been a signal that she was panicking. She just corrected the record. Luna: So the playbook is: own it fast, fix it, don't over-apologize, and don't offer compensation unless it's warranted. Lucas: Exactly. And there's one more layer. The research shows that trust repair works best when the mistake is seen as an isolated incident, not a pattern. So after you admit it, you need to demonstrate that you've tightened your process. Jenna followed up with a revised proposal that had a note about internal checks. Luna: She turned the mistake into a quality signal. 'We caught it, we fixed it, and now we're better.' That's almost a selling point. Lucas: It is. And it's a lot more effective than pretending to be perfect. Buyers are smart — they know salespeople make mistakes. The question is how you handle them. Luna: You know, it's interesting — we've been doing this show for a while now, and one thing I've noticed is that the most useful episodes are often the ones where we share a counterintuitive idea like this. That's part of why we keep these conversations ad-free. We don't want to interrupt the flow or have you sit through a commercial break. If you find value in them, you can support that choice at buy me a coffee dot com slash fexingo. No pressure, just an option. Lucas: Yeah, I think that aligns with today's topic too. Trust is built by being straightforward. That's what we're trying to do here. So back to Jenna — she ended up closing a three-year deal worth about four hundred thousand dollars. And the client later became a reference account. Luna: So the mistake actually strengthened the relationship long-term. Lucas: Exactly. And that's the real takeaway. In a world where buyers are bombarded with polished pitches, a moment of genuine honesty can cut through the noise. It's risky, but when it works, it works well. Luna: So if you're a salesperson listening, next time you make a mistake — don't hide it. Consider owning it. But do it thoughtfully. Lucas: And maybe keep a copy of that HBS study in your back pocket. Until next time.