Bidenflation: Peloton to Hike Prices on Exercise Equipment Citing Rising Costs
Exercise equipment maker Peloton reportedly plans to increase the price of its original Bike and Tread products, citing rising inflation and heightened supply chain costs. One executive explained: “Right now, people are raising prices. Ikea just raised prices. We want to go in the middle of the pack.”
CNBC reports that the exercise equipment maker Peloton is charging customers more for its original Bike and Tread products, increasing prices due to inflation and heightened supply chain costs.
US President Joe Biden speaks about the December jobs report on January 7, 2022, from the State Dining Room of the White House in Washington, DC. (Photo by MANDEL NGAN/AFP via Getty Images)
SAN PEDRO, CALIFORNIA – OCTOBER 25: Trucks operate at the Port of Los Angeles during nighttime operations on October 25, 2021 in San Pedro, California. (Photo by Mario Tama/Getty Images)
From January 31 onwards, Peloton will be adding a $250 delivery and setup fee for its Bike and another $350 for its Tread, bringing the cost of the products to $1,745 for the bike and $2,845 for the treadmill.
Peloton previously stated that the $250 and $350 fees were included in the total price of the products. The price of Pelotons newer Bike+ product is, however, staying the same at $2,495. Prices for the company’s products appear to be increasing across the UK, Germany, and Australia also.
In a recent meeting of company management, Peloton Chief Marketing and Communications Officer Dara Treseder stated that the price increases were the result of growing inflation and higher supply chain expenses. CNBC obtained a recording of the meeting in which Treseder stated: “Right now, people are raising prices. Ikea just raised prices. We want to go in the middle of the pack.”
Treseder added that the company did not want to come across as doing a “switch and bait” on customers. In a statement to CNBC, a spokesperson for Peloton said: “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.”
The spokesperson added: “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.”
While Peloton initially saw great success in 2020 amidst gym closures and worldwide lockdowns, Peloton’s growth has since stalled. Peloton stock prices fell by about 76 percent in 2021, after rising by more than 440 percent in 2020.
Read more at CNBC here.