Today’s announcement was previewed during Peloton’s third-quarter earnings call in May. McCarthy also mentioned developing third-party store relationships and reducing the necessity for white-glove delivery for its bikes and treadmills at the time.
However, the proposed price increases will have the greatest effect on consumers. To deal with surplus inventory, Peloton reduced the costs of the original Bike, Bike Plus, and Tread to $1,445, $1,995, and $2,695, respectively, in April. The Bike Plus will now revert to its previous price of $2,495 while the Tread will rise by $800 to $3,495. This is more than Tread’s original launch price of $2,495 (later raised to $2,845). The Tread was designed to be the “cheapest” of Peloton’s two treadmills. The Tread Plus, on the other hand, was recalled and withdrawn after causing many injuries and, in one case, the death of a small kid. The original Bike and the newly announced Peloton Guide, on the other hand, will stay unchanged in price.
