Peloton said Tuesday that it’s adding a new athletic product to its lineup: rowing machine Pricing starts at $3,195. Consumers who also want to take its fitness classes will have to pay another $528 a year.
The struggling fitness company is advertising the machine, called the Peloton Row, for “full-body cardio and strength” workouts. But fitness enthusiasts are decrying the cost of the machine, noting that buyers also need a full bank account. The Peloton rowing machine sells for more than three times the price of the rival Concept 2, which is considered a gold standard rower, and has a List price $990.
There’s a lot of danger in Peloton, a once-pandemic darling that has lost its footing as Americans venture back into the gym and lose their taste for expensive home gym equipment.Peloton has had two rounds so far this yearand a management while its stock price has plummeted 75%.
Peloton said it is taking pre-orders for the new rowing machine, with delivery expected in December.
Some have questioned Peloton Row’s pricing and have complained on social media that the company charges too much — especially rowers’ fitness classes that cost an extra $44 a month, or $528 a year.
“I can get a [Concept 2] $1,000,” one observer wrote on Twitter, “a stupid price. “
Another consumer said it wasn’t just a matter of price, but that Peloton didn’t offer potential customers financing options that might have made the price tag more palatable.
Peloton has defended its pricing, noting that rowers aim to provide a “premium experience.”
“No other connected fitness rower on the market offers the same amount of content,” spokesman Ben Boyd told CBS MoneyWatch. “The package of software and hardware is completely unparalleled.”
Barry McCarthy, who Pelotonalso defended hard pricing for its equipment at a Goldman Sachs event last week.
“We offer premium products because, let’s face it, you’re not price sensitive,” he told one analyst. “People like you are not price sensitive. If we have a great product, they will buy it anyway.”
McCarthy also said he expects the online home fitness business to rebound, even as COVID-19 eases across the U.S. and Americans return to gyms.
“Today, the category is shrinking. In the long run, will it shrink? I don’t think so. I think it’s a post-COVID phenomenon where people are traveling, going back to the gym, and rediscovering that their lives are far away,” he said. Say. “But over time, I think living a healthy lifestyle is part of our value system and part of the fabric of today’s ageing economy.”
In fact, some Wall Street analysts remain bullish on Peloton’s prospects despite slowing growth and last week’s management shake-up from co-founders John Foley and Hisao Kushi.
Oppeneheimer analysts said in a research note this week that Peloton retains significant competitive advantages, including experience cultivating an online community, high consumer satisfaction scores and a business model that offers significant growth potential with a small investment.
The digital fitness and wellness market also remains fragmented, providing an opportunity for Peloton to gain market share, the investment firm said.