Peloton said Tuesday that it is adding a new exercise product to its lineup: a rowing machine Which starts at $3,195. Consumers who want to access their range of fitness classes must pay $528 annually.
The struggling fitness company is using a machine called the Peloton Row for its “full-body cardio and strength” workout. But fitness fans are raving about the cost of the machine, noting that buyers will also need a full bank account. Peloton rover sells for more than three times the cost of competitor Concept 2, which is believed to be gold standard of rovers and a . Is $990. price tag of For its entry level model.
Other fitness equipment makers also charge much less for their rowers, with NordicTrack’s top model costing around $1,800 and rivals such as Aviron and Ergata’s machines topping out at around $2,500.
A lot is on the line for Peloton, the once-pandemic darling who lost his leg as Americans venture back into gyms and lost their taste for pricey home exercise equipment. There have been two rounds of the peloton so far this yearand a management While its stock has fallen 75 percent.
Peloton said it is taking pre-orders for the new rowing machine, which is expected to be delivered in December.
Some questioned Peloton Row’s pricing, taking to social media to complain that the company was charging too much—specifically an additional cost of $44 a month for Rover’s fitness classes, or $528 for a year. is needed.
“I can get [Concept 2] For $1k,” wrote one observer on Twitter. “That price is just DUMB.”
Another consumer said it’s not only the price, but also that Peloton isn’t offering financing options to potential customers, which could otherwise make the price tag more attractive.
Peloton defended its pricing, noting that the rover is designed for a “premium experience.”
“There is no other connected fitness rower on the market that will cost the same amount of material,” spokesman Ben Boyd told CBS MoneyWatch. “The package of software and hardware is absolutely unmatched.”
Barry McCarthy, Joe Pelotonalso defended the tighter pricing for its equipment at last week’s Goldman Sachs event.
“We’ve got a premium offering because, let’s face it, you’re not price-sensitive,” he told one analyst. “And people like you weren’t price sensitive. And if we have a good product, they’re going to buy it.”
McCarthy also said he expects the online home fitness business to improve as well, as COVID-19 eases around the US and Americans return to gyms.
“Today, the category is shrinking. Will it shrink in the long term? I don’t think so. I think it’s a post-COVID phenomenon where people are traveling, going back to the gym, life are rediscovering what they have done,” he said. “But in the fullness of time, living a healthy lifestyle is, I think, part of our value system, part of the fabric of today’s growing economy.”
In fact, some Wall Street analysts remain optimistic on Peloton’s prospects, despite its slow growth and a management shakeup last week that saw co-founders John Foley and Hisao Kushi.,
Analysts at Oppenheimer said in a research note this week that Peloton retains significant competitive advantages, including experience in cultivating online communities, high consumer satisfaction scores and a business model that offers substantial growth potential with a modest investment. provides.
The investment firm said the digital fitness and wellness market is also fragmented, giving Peloton opportunities to increase its market share.