If you thought Mr Big’s heart attack was the worst thing to happen to Peloton in 2022, think again. Today, shares in the at-home fitness giant have plummeted by more than 20% after reports that Peloton was temporarily halting all production of their bikes and treadmills due to a lack in demand.
Is now a good time to buy a Peloton?
In a word, yes. Peloton is increasing its prices on its Tread and Bike from January 31, citing rising inflation and heightened supply chain costs. The company will now be asking buyers to pay an additional $250 for the delivery and set up of the Bike, and an additional $350 for the delivery and set up of the Tread, according to a new banner on the company’s website.
This will raise the price of the Bike from $1,495 to $1,745, and the price of the Tread from $2,495 to $2,845. The price of the Bike+ will remain the same. Until now, the cost of delivery and set up has been included in the price of the product.
The UK and German websites also have similar messaging with price increases.
A Peloton spokeswoman told CNBC in an emailed statement, “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.”
“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,” the spokeswoman said.
What does this mean if you’re already a Peloton user?
If you’re already a Peloton subscriber, at the time of writing, nothing looks set to change. The $39.99 subscription fee will still apply to new and existing Peloton users.
Is Peloton worth it?
A tricky one to answer. Right now, things don’t look great for the brand, and as a fitness editor, I’ve always believed exercise equipment is only worth it if you actually use it (I can’t tell you how many people I know who use their treadmill as a clothes horse). That said, in my Peloton Tread review, I was blown away by the community element only Peloton seems to bring to the market, and the variety and quality of the classes is excellent. Here's what another one of our editors learned after using the Peloton for a month.
Does this spell the end of Peloton? I hope not, but if I was considering adding a Peloton Bike or Tread to my home gym, I’d definitely invest in the next 11 days, that’s for sure.