STRATEGIC RATIONALE FOR DUAL DISTRIBUTION IN PUBLIC SECTOR: EXPANDING MARKET RESEARCH AND GROWTH OPPORTUNITIES

Another major driver of dual distribution is the opportunity to expand sales coverage and tap into untapped markets. No single distributor – no matter how large – can reach every potential customer or partner. By appointing a second distributor, a tech company can access a broader ecosystem of value-added resellers and integrators, some of whom may prefer working with one distributor over another. Essentially, it opens the door to new channel partners and thus new end-users that were not actively engaged before.

For instance, one distributor might have strength in the federal civilian market and large prime contractors, while another has deeper relationships in state/local agencies or with smaller regional VARs. Using both allows the vendor to cover more territory and customer segments without over-relying on a single partner’s network. It also creates healthy competition to drive channel partner recruitment and enablement – each distributor will work to onboard more resellers for the vendor’s products to out-perform the other, resulting in net new partner relationships for the manufacturer. Channel partners themselves appreciate having choices; some VARs may have better credit terms or support experiences with a particular distributor, so giving them an alternative can increase their overall engagement in selling the product line. Channel partners want choice, whether it’s for a better buying experience, more attentive support, or improved financing options.  A dual distribution strategy delivers that flexibility to the partner community, which in turn can lead to more partner-driven deals and revenue growth for the vendor.

Dual distribution can also help vendors enter new verticals or regions within public sector. For example, a company might use one distributor to focus on Federal civilian and defense agencies, and another to drive into SLED (state, local, education) markets which often have separate contracts and players. Each distributor brings its own public sector expertise and relationships that complement the other. One might have strengths in healthcare agencies or K-12 education buyers, while the other dominates in law enforcement or defense contracting – together, the vendor’s coverage becomes much more comprehensive. In essence, two distributors acting in parallel can blanket the public sector landscape more effectively than one, leading to greater sales in aggregate.

In addition, engaging a second distributor can energize your overall channel through fresh marketing and demand generation efforts. Distributors frequently invest in marketing on behalf of their suppliers – campaigns, events, and lead generation targeted at government prospects. With dual distribution, the manufacturer gets the benefit of two sets of marketing engines promoting its solutions. Often, each distributor will have unique marketing programs or reach different audiences (e.g. one might run federal tech forums while the other excels at state IT trade shows). The combined impact can significantly extend the brand presence of the tech company in public sector. It also avoids a scenario where the vendor’s brand messaging is filtered solely through one distributor’s lens. With multiple partners, the manufacturer can drive its own brand narrative more freely – no single distributor “controls” the brand in front of government customers. This gives the vendor greater influence over how its product is positioned and sold, enhancing brand consistency and control in the market.

Finally, having at least two distributors inherently keeps each partner motivated to pursue every possible sale. In a single-distributor setup, that partner might cherry-pick opportunities or prioritize products that yield them higher margin. If they become complacent, some leads might languish. But if there’s a competitive alternative, each distributor knows the vendor can route deals to the other if they don’t perform. This tends to spur a more proactive sales effort and better account support.  In a dual distribution scenario, both partners will vie to deliver value so that the vendor (and the government customers) stay with them. The result is typically improved support quality, responsiveness, and creativity from your distribution partners – all of which drives growth.