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I am a dedicated user of all things Peloton, from my trusty 4-year-old Bike to the at-home fitness giant’s robust mobile app, and I have happily paid whatever was asked of me for both. But what I paid for my equipment in 2021 and what I still pay for my All Access Membership now may not be what you or I are paying in the future.
The brand recently shared its fourth-quarter investors’ letter and, with it, hinted at a few pricing changes. They don’t seem like they’re going to be huge, but they are definitely coming.
“Adjusting prices” is on the agenda
One of the most crucial pieces of information in the letter is a promise to focus on “improving monetization,” which falls under the subheading of “business excellence.” The company says it will “become more sophisticated” when it comes to the use of promotions and, crucially, “will adjust prices to reflect [its] costs,” like shipping, returns, tariffs, and other fees Peloton is currently shouldering the burden of.
“For example, we will introduce optional expert assembly fees to reflect the real costs of installing our equipment, while extending free self-install to include our Tread and Row, thereby preserving Member choice and control,” the letter says.
So, it sounds like free equipment setup is a thing of the past. When I got my Peloton Bike and the Bike+ the company loaned me to test out, setup and delivery were free—but in both cases, I could have handled it myself. I watched the setup guys and came to the conclusion that, with some written instruction, I would have been able to do what they did just fine, although it was certainly nice not to have to.
The Peloton Bike costs $1,445 and the Bike+ costs $2,495. Meanwhile, the Tread and Row, which are on course to offer free self-install options, are $2,995 and $3,295, respectively. With prices like that, it’s not going to be appealing to have to pay more to have them set up when you could do it yourself—especially when you consider you’ll still be paying $44 per month for the All Access Membership you need to use them and a bunch of other smaller costs for accessories and supplemental equipment.
Peloton is, however, sticking with its Special Pricing program to make equipment more affordable for teachers, military personnel, first responders, and medical professionals. As of right now, the program grants qualified buyers up to $600 off equipment and membership discounts, but the price cuts differ depending which special group you belong to.
Layoffs are also part of the plan
In that same “business excellence” section came a sadder revelation: “Our operating expenses remain too high, which hinders our ability to invest in our future. Today, we are launching a cost restructuring plan intended to achieve at least $100 million of run-rate savings by the end of FY26 by reducing the size of our global team, paring back indirect spend, and relocating some of our work.”
In other words, layoffs and relocations are coming, which is probably something we could have guessed at, given the recent closure of so many Peloton showrooms.
Buying options for you
The letter specifically mentions things like tariffs (which are expected to impact cash flow for Peloton by about $65 million next year) and a slight decline in the number of paying members as having an impact on the bottom line here. Still, it also says Peloton plans to expand its “microstore” offerings (which are likely easier to maintain than a massive showroom), beef up the number of third-party retailers selling equipment, and roll out “even more differentiated cardio experiences” and “fitness and wellness experiences.” To me, as someone who is already constantly using the surprisingly wide variety of cardio and wellness classes, that’s great news—and a sign that this is a good time to invest in more Peloton offerings, especially given we don’t know what it will all cost in the future.
If I were in the market for new equipment, I’d buy now, just to be safe and avoid possible price increases on both the devices and their installation. The promise of beefed-up class offerings makes getting new equipment appealing, too, even without the threat of rising costs.
Don’t forget, either, that you have options in the event you can’t foot a $2,000+ bill right now: Peloton has its own newly launched resale platform, Repowered, which currently allows you to buy pre-owned devices at steep discounts. There are also other trustworthy resale platforms out there that can help you stay away from the danger zones that are Facebook Marketplace and Craigslist.
