Peloton is radically reimagining its industry-leading product lineup. First, they are introducing a new line of commercial equipment and with that intentionally raising the price of subscriptions and hardware. This strategic overhaul aims to reignite growth as the company approaches the crucial holiday shopping season, where over 60% of annual sales occur. At the same time, the relaunch features a completely updated “plus” line of equipment that boasts cutting-edge technology designed to improve the user experience.
Peter Stern, who helped launch Apple Fitness+ and was once in charge of Ford’s subscription services, is the new Peloton CEO. With his guidance, the industry giant is making ambitious moves to refresh its image. Most importantly, they’re committing to staying in touch with the full spectrum of classes sought by their users.
The original Peloton Row ($3,295) introduced last year will be discontinued. The new Row+ will launch at an MSRP of $3,495. Along with this change, the refreshed plus line will introduce an AI-powered tracking camera, enhanced speakers, a 360-degree swivel screen, and hands-free control options.
Peloton’s machines have faced challenges, including product safety issues that have negatively affected the company’s profitability. Peloton has serious problems with the way it manufactures its products. The company appears genuinely committed to making improvements. Its products are expensive to manufacture and serve a relatively small, specialized market.
Beyond a facelift, Peloton plans to raise the cost of its membership. The price adjustments include raising the Bike price from $1,145 to $1,695, the Bike+ from $2,495 to $2,695, the Tread from $2,995 to $3,295, and the Tread+ from $5,995 to $6,695. These hikes represent Peloton’s commitment to providing additional value through its improved offerings.
Peloton’s new commercial equipment line, named Peloton Pro Series, includes commercial versions of its Bike+, Tread+, and Row+. This series is aimed at the more modest gyms found in hotels, medium and high-rise apartment buildings, corporate wellness centers, and country clubs. The company’s made several moves to build its commercial business, including trying to sell to hotels and universities in partnership with those institutions.
“Peloton equipment in hospitality settings are the most productive source of trial and lead generation for our consumer business,” stated Dion Camp Sanders. He added that the first place many consumers encounter Peloton equipment is at those aspirational premium hotels. Once they’ve had an opportunity to use one, they might be convinced to purchase their own.
These updates are intended to help users transition more smoothly between various workout types. Nick Caldwell emphasized this point in his remarks about the new swivel screen design:
“We’ve integrated our largest swivel screen across the entire plus line, 360 degrees of movement. It’s built for seamless transition from your cardio to different workout types. You can step off the Bike, Tread or Row, turn the screen, and you’ve got a front row view for strength, yoga, stretch or mobility work.”
The new products go beyond mere compliance by combining intuitive design with new features to improve usability. Caldwell added:
“We’ve also added voice control. You can adjust weight, skip moves, pause all with your voice; no more fumbling around with buttons while you’re trying to enjoy your workout.”
Stern further elaborated on the company’s vision with the new product line:
“The products are called the cross training series because we’re trying to help our members understand that the right regimen for everyone is a mix of cardio and strength, and also investing in practices like yoga and meditation.”
He noted that each product was designed to facilitate a multidisciplinary approach to wellness:
“The products were designed, regardless of which one you buy, to facilitate that type of multi-disciplinary approach to wellness.”
It’s no secret that Peloton has struggled mightily with profitability and their overall business operations in recent years. The firm has done an admirable job of resetting its cost base and avoiding the fiscal abysses. The upcoming holiday season presents Peloton with a key opportunity to flaunt its refreshed wares. This is a maaaajor opportunity for the company to increase sales.