Source: Peloton / Peloton
Peloton is hoping to win back customers with a new pricing model that some users will find more affordable. Instead of making customers buy one of their expensive bikes – which sell for as much as $2500 – Peloton will instead charge a monthly fee that covers the cost of both the equipment and their on-demand fitness classes. If the customer cancels, Peloton takes the equipment back. Fees will range from $60-$100 monthly. The new model will launch a test run soon in Texas, Florida, Minnesota, and Denver. Peloton has been struggling with a lack of profits and a tanking stock price recently, and hired a new CEO, Barry McCarthy, last month. Would this new pricing model make you more likely to try a Peloton? Why do you think the company is struggling?
