Peloton is cutting the price of its bikes and other equipment, but at the same time, it’s raising its subscription fees.
The connected fitness company’s moves come after a cold, hard winter in 2022. The company previously paused production of its fitness equipment in order to regroup, cut thousands of jobs, and introduced a new CEO.
“The pricing changes being announced today are part of CEO Barry McCarthy’s vision to grow the Peloton community,” a company spokesman told CNBC.
When McCarthy joined the company, the opportunity for Peloton to cut hardware costs was too good to pass up. He said a price cut should make it more affordable for a consumer to become a Peloton user. That, in turn, could enhance the possibilities for the company to grow monthly recurring revenues.
The new prices
Beginning June 1, Peloton’s all-access subscription plan in the U.S. will go from $39 a month to $44 per month. Pricing in Canada will also go up by $6 a month, but pricing for international members will remain unchanged. People who don’t own a Peloton bike but want to use the digital-only service will continue to pay $12.99 a month.
As for the price of its bikes and treadmills, the purchase price for a Peloton Bike will drop considerably – from $1,745 to $1,445, including the cost of shipping and setup. The Bike+ will drop in price to $1,995 from $2,495, and the Tread will sell for $2,695, down from $2,845; that also includes shipping and setup.
In a separate move, Peloton said it is also beta-testing a rental option in several U.S. markets. That would allow users to pay a monthly fee between $60 and $100 for a package that includes a rented Bike and access to its workout content library. The company said it recently expanded the test to additional markets and has added the Bike+ as another rental option.