Peloton Bike+ and Tread Machines Get Big Price Increases
To bring in more revenue, Peloton is resorting to some major price hikes for the company’s Bike+ and Tread machines in an effort to target high-end customers.
On Friday, Peloton announced(Opens in a new window) it's raising the price for the Bike+ by $500, which will now cost $2,495. Meanwhile, the Tread machine is going up in cost by $800 to $3,495. The price changes roll out today to markets including the US, Canada, UK, Germany, and Australia.
The news arrives as Peloton is trying to engineer a comeback when demand for the company’s exercise machines and programs has declined. In February, Peloton laid off 2,800 employees while its CEO resigned.
Friday’s price increase is a little surprising because in April Peloton went in the opposite direction and slashed prices. The Bike+ dropped $500 to $1,995 while the Tread decreased $150 to $2,695. In a statement, Peloton said the price increases are part of a strategy to better position the company "for long-term success."
"Inspired by the progress we've made on our transformation journey, we're adopting a more strategic pricing strategy for our premium products,” the company said on Friday.
The good news is that the pricing for the original Peloton Bike will remain unchanged in all markets, according to the company. It currently costs $1,445 in the US.
Peloton’s new CEO, Barry McCarthy, also discussed the reasoning behind the pricing change in a memo to employees, which the company shared with PCMag.
"This pricing change achieves three objectives—we maintain an attractive entry point for new Members; we continue to sell down excess Bike v1 inventory, creating a financial tailwind on investments already made; and we maintain our position as the undisputed premium brand
Read more on pcmag.com
