Beginning January 31st, 2022, it appears Peloton will be raising the prices on the Peloton Bike & Peloton Tread. In some markets this is being done by charging for delivery & setup. In other countries, the base price of the products are being raised.
In the US & Canada, Peloton is set to increase their prices by reinstating a delivery & setup fee – which has previously been included in the purchase price. However, in the UK, Germany, and Australia Peloton has messaging on their site that they will be increasing the base price of the products – but delivery & setup will remain included.
Update – CNBC has since reported on this. CNBC acquired a recording of an internal meeting, where Peloton’s chief marketing and communications officer, Dara Treseder was quoted as saying:
“Right now, people are raising prices. Ikea just raised prices. We want to go in the middle of the pack
Peloton also provided CNBC with a quote about the price changes:
“Like many other businesses, Peloton is being impacted by global economic and supply chain challenges that are affecting the majority, if not all, businesses worldwide.”
“Even with these increases, we believe we still offer the best value in connected fitness, and offer consumers various financing options that make Peloton accessible to a wide audience
The U.S. Peloton homepage has been updated a new image that says: “Delivery & setup ($350 value) is included when you buy the all-new Peloton Tread now. From 1/31 delivery & setup fees will apply.” This means that as of January 31st the Peloton Tread will effectively increase in total price to $2,845 as opposed to the $2,495 it costs today.
The homepage has also been updated with a banner stating: “Get Delivery & Setup ($250 value) when you buy Peloton Bike Now. Ends 1/30”. Unlike the Tread, the US Peloton website does not explicitly state that Peloton will start charging for delivery & setup for the Bike, even though it is suggested. However, based on the messaging on the UK, Germany, and Australian websites, it seems like a safe assumption that it will be the case for the Peloton Bike as well. It’s not clear if the price of the Peloton Bike+ will be changing as well, or remain the same.
Assuming this is the case with the information presented, the effective total price of the original Peloton Bike will increase from $1,495 to $1,745. If the cost of the Peloton Bike+ were to change by the same amount, the total cost of the Peloton Bike+ would raise from $2,495 to $2,745.
Interestingly, the U.K., German, and Australian sites all explicitly state that the retail price is increasing in a banner at the very top of the sites. The U.K. site banner states: “Get the Peloton Bike for £1,350 now. From 31/1 a new price of £1,550 applies” There is a similar messages on the product pages for the Tread as well.
It is not exactly clear why the U.S. and Canadian sites portray the price increase as a fees increase, whereas the U.K., German, and Australian sites portray it as a total package increase and are keeping shipping included, since these have the same net effect. This could be due to taxes and customs in each country.
Delivery and set-up has been included for Peloton Bike and Tread devices for years. However, this would be a way to increase profitability on each device without raising the price of the device itself – which they’d likely want to avoid after recently lowering the price of the original Bike back in August.
This development does not exactly come as a surprise. Peloton CEO John Foley indicated during December’s Annual Shareholder meeting that they may look at charging for delivery and set-up. In that meeting, Foley discussed wanting to keep the $39 per month All Access membership fee, but said he was open to changing the free delivery and set-up structure they currently had in place.
This isn’t the only price increase we’ve learned about in recent days. Peloton also raised the prices on their dumbbell weights (as well as yoga mats and some other accessories). by anywhere between 20%-60% earlier this week. Yesterday it was announced that Peloton would be removed from the NASDAQ-100 Index after a tough year that saw shares down more than 80%.
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