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Peloton is about to earn hundreds of dollars in fees for its bike and treadmill, citing inflation – NBC4 Washington

  • Peloton is about to start charging customers more efficiently for its original Bike and Tread products, citing inflation and rising supply chain costs.
  • Starting January 31, the company will ask customers to pay an extra $250 for delivery and setup for its Bike, and an additional $350 for the Tread, according to a banner on its website.
  • That would bring the cost of those products up to $1,745 and $2,845, respectively.

Peloton is about to start charging customers more efficiently for its original Bike and Tread products, citing rising inflation and rising supply chain costs.

Starting January 31, the company will ask customers to pay an extra $250 for delivery and setup for its Bike, and an additional $350 for the Tread, according to a banner on its website. That would bring the cost of those products up to $1,745 and $2,845, respectively.

Previously, Peloton said $250 and $350 delivery and assembly fees were included in the total price of the Bike and Tread.

The price of Peloton’s newer Bike+ product, at $2,495, will remain unchanged, according to its website.

In the UK, Germany and Australia, Peloton has similarly announced on its website that costs will increase starting January 31.

During a recent meeting between the company’s management, Dara Treseder, director of marketing and communications for Peloton, said the changes were due to increasing inflation and higher supply chain costs.

“Right now, people are bullish. Ikea just raised prices. We want to go in the middle of the pack,” Treseder said, according to a recording of the meeting obtained by CNBC.

She added that the company doesn’t want to be seen as “tricking and baiting” customers.

A Peloton spokesperson told CNBC in an emailed statement, “Like many other businesses, Peloton is being impacted by the global economic and supply chain challenges that are impacting the majority, if not all, worldwide businesses.”

“Even with these increases, we believe we’re still delivering the best value for connected fitness and providing consumers with a variety of financing options that keep Peloton going.” close to many audiences,” the spokeswoman said.

The $39.99 monthly subscription fee that its connected fitness users pay for on-demand content will remain the same.

In August, Peloton was discount cheaper bicycle products about 20% to $1,495 off, as it hopes to attract more consumers with a cheaper option.

After seeing increased demand from consumers looking for home workout equipment in 2020, Peloton’s momentum has slowed significantly in recent months. Its shares have also been successful. Shares are down about 76% in 2021, after rallying more than 440% the year before.

In November, Peloton cuts its full-year outlook due to continued supply chain constraints and falling demand. Analysts said they expect the company to also have a weaker holiday season, which could reminding another cut to its annual guide.

Last Thursday, Nasdaq said shares of Peloton would be replaced with Old Dominion Freight in the Nasdaq 100 index, effective January 24.

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https://www.nbcwashington.com/news/business/money-report/peloton-is-about-to-tack-on-hundreds-of-dollars-in-fees-to-its-bike-and-treadmill-citing-inflation/2938601/ Peloton is about to earn hundreds of dollars in fees for its bike and treadmill, citing inflation – NBC4 Washington

Andrew Kugle

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