[bsbechtel]

I would add a few additional things to consider when thinking about a hardware product (via retail). First, creating additional value for your entire supply chain is extremely important, and gives you a lot of leverage. The OP mentioned this indirectly via high demand products creating walk in value, but additional value also can include selling a higher value/higher margin product, or creating a product that is highly consumable and has a high churn rate (think 5 hr energy). Ultimately the retailer is trying to maximize the $/sq ft in their store, and doing the things mentioned above will certainly help with that. Also selling a product that drives accessory purchases will give you additional leverage. Think phones that push purchases of cases and screen covers. Also think of Apple and the huge amount of floor space their products take up in a Best Buy. They can do this because of the higher value their products offer to the retailer. In addition, the higher value product you sell, the lower margin your retailers can be willing to take in order to sell the product. Ultimately, the retailer has to make more money with your product than the other products he or she could be selling in the same space to justify selling your product. This line or reasoning goes for your suppliers as well, especially if you are working with a factory that is near or at at capacity.