Peloton just officially announced that they have raised the prices of both the Tread and Bike+, in an effort to “adopt a more strategic pricing strategy for the premium products”. The original Peloton Bike and the Peloton Guide will remain at their current prices; the price increase of the Tread and Bike+ will go into effect today.
Update – There are reports Peloton will honor the old pricing for current members until August 19th. See details here.
These price increases affect customers in all Peloton sales markets, and are listed below:
Peloton Price Increases in the US on Bike+ & Tread
Bike+ will increase by $500 and will now sell for $2,495
Tread will increase by $800 and will now sell for $3,495
Peloton Price Increases in the Canada on Bike+ & Tread
Bike+ will increase by $800 and will now sell for $3,295
Tread will increase by $1,100 and will now sell for $4,495
Peloton Price Increases in the UK on Bike+ & Tread
Bike+ will increase by £500 and will now sell for £1,995
Tread will increase by £900 and will now sell for £3,345
Peloton Price Increases in the Germany on Bike+ & Tread
Bike+ will increase by €500 and will now sell for €2495
Tread will increase by €1,100 and will now sell for €3,795
Peloton Price Increases in the Australia on Bike+ & Tread
Bike+ will increase by $350 and will now sell for $3,345
Tread is currently not available in Australia
These new price increases come at an interesting time, as the prices for equipment were just lowered significantly by Peloton four months ago, however now they are reversing course, and also cutting costs in other areas of the company as well.
If you are curious how the pricing of Peloton pricing has changed over time, you can see a history of Peloton pricing here.
In an update sent to employees, Peloton CEO Barry McCarthy said the following about the price changes:
Because of our success managing our inventory and supply chain issues, and because of the bank financing, we have the opportunity to adopt a more nuanced pricing strategy targeting “value” and Premium members alike by increasing prices on our Bike+ and Tread models – which contain distinctive, superior design elements, while keeping the price of the Bike v1 and Guide the same.
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 in the Connected Fitness category.
In April Peloton lowered the price of the Bike, Bike+, and Tread, while raising monthly subscription prices. This was the first time the subscription prices for All-Access members was ever raised, and Peloton announced it was so they could continue creating high quality content for members. In the press release from Peloton today they also mentioned that the April 2022 price drop for equipment was in order to “make the entry point for new members for accessible”.
Today’s price change brings the Bike+ back to what it was in April 2022 prior to that price decrease in the US. The Tread is now more expensive than it was at the beginning of the year.
This morning it was also reported the Peloton is moving all of their delivery and repairs to 3rd party companies and all of their warehouse locations are being closed. This move to 3rd party companies and the closures of warehouses won’t be immediate, but will take place likely by the end of 2022. This also means of course that a huge number of Peloton employees that were working in delivery, service, or the Peloton warehouses will be laid off.
Not only will warehouse and delivery employees be laid off, but Peloton also laid off hundreds of customer support agents as part of their company restructuring initiated by the new CEO. Many of the laid off employees from this most recent round of layoffs were customer support agents working outside of the New York area. This includes many employees from the Plano, TX Peloton Campus, which was announced to be going through expansions in late 2020. It has also been reported that some of these locations have had as many as 40-50% of employees laid off.
With so many things shifting at Peloton, how do you feel about the health and future of the company?
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I’m increasingly believing that the Peloton execs are playing out some kind of Brewster’s Millions scenario, it’s the only logical explanation for all of these bizarre decisions.
I was checking out earlier online for the tread and right as I was entering payment info the price jumped. I contacted customer service and they are unwilling to honor the previous price. EVEN THOUGH IT WAS ALREADY IN MY CART AND I WAS ACTIVELY CHECKING OUT!
Happens all the time with variety of retailers. Frustrating but the nature of the beast. Love both my bike and Tread. Would pay today’s prices if I had to. Good luck with your fitness!!
Huge mistake by Peloton. This brand has just lost tons of respect. I am very skeptical of the fate of Peloton. It’s really too bad because the instructors are great but this makes them look shady, and not at all “premium”.