The place I used to work at had a similar idea, just an incredibly poor execution. LocalOn has the right idea - local businesses are very skeptical of non-local companies especially startups. They're typically much more emotionally invested in their business than salespeople account for, and don't want to associate their business with a perceived loser [0].

If you're a startup trying to edge your way in to the long tail of local sales, focus on getting a sales partner with local cred. The local break/fix or MSP shop will be an excellent bet - they already resell plenty of tech products.

[0] Anything other than a winner, e.g. most startups.