Peloton said Tuesday it is adding a new exercise product to its lineup: A rowing machine Starting at $3,195. Consumers who also want access to its range of fitness classes will have to pay another $528 per year.
The struggling fitness company is promoting the device, called Peloton Row, for “full-body cardio and strength” exercises. But fitness enthusiasts are critical of the cost of the device, noting that buyers will also need a full bank account. The Peloton rowing machine sells for more than three times the cost of the competitor Concept 2, which is gold scales Of the rowers and has Its price is 990 dollars for entry form.
Other fitness equipment makers also charge much less for paddling. NordicTrack’s top model is priced around $1800, machines from competitors like the Aviron and Ergatta come in at around $2,500, while a “normal” WaterRower unit starts at under $1,000.
There’s a lot at stake for Peloton, a beloved one-time pandemic that lost its footing when Americans ventured back to the gyms and lost their taste in buying expensive home exercise equipment. So far this year, Peloton has run two rounds ofand management While its stock fell 75%.
Bank of America analysts believe Peloton could sell more than 60,000 rowers next year and add about 25,000 subscribers, noting that the rowing market is only a quarter of the running and cycling space.
“Peloton is targeting the higher end of the rowing market given capacity and price point, and Peloton may be unwilling to incur a gross margin loss on units given the potential for material sales to overlap with existing Peloton subscribers,” they said in a note.
Peloton said it is receiving pre-orders for the new rowing machine, and delivery is expected in December.
Some people have questioned Peloton Row’s pricing, taking to social media to complain that the company charges too much — especially since the rower’s lineup of fitness classes requires an additional expense of $44 a month, or $528 for one year.
“I can have a file [Concept 2] One observer wrote on Twitter for a thousand dollars. This price is for DUMB only.
Another consumer said that it’s not just about the price, but also that Peloton does not offer financing options to potential customers, which could make the price more acceptable.
Peloton defended its pricing, stating that kayaking is designed to be a “premium experience.” Among the features the company is promoting in the new rowing machine: “Individually calibrated” feedback to help users improve their technique. Electronically controlled resistance that allows “frictionless” strikes; and rotating screen.
“No other fitness-related rower on the market can afford the same amount of content,” a spokeswoman for Ben Boyd told CBS MoneyWatch. “The software and hardware package is absolutely second to none.”
Barry McCarthy, Former CEO of Spotify Pelotonalso defended the stringent pricing of its equipment at last week’s Goldman Sachs event.
“We have a premium offer because, let’s face it, you’re not price sensitive,” he told an analyst. “And people like you weren’t price sensitive. And if we had a great product, they would buy it regardless.”
McCarthy also said he expects the online home fitness business to rebound even as COVID-19 subsides across the United States and Americans return to the gym.
“Today, the category is shrinking. Is it going to shrink in the long run? I don’t think so. I think this is a post-COVID phenomenon where people are traveling, going back to the gyms, kind of rediscovering the lives they lived getting away from.” “But over time, I believe that living a healthy lifestyle is part of our value system, part of the fabric of today’s aging economy.”
In fact, some Wall Street analysts remain optimistic about Peloton’s prospects despite its slowing growth and a management change last week that saw co-founders John Foley and Hisao Koshi..
Oppenheimer analysts said in a research note this week that Peloton retains significant competitive advantages, including expertise in growing online communities, high consumer satisfaction scores, and a business model that offers the potential for significant growth with minimal investment.
The investment firm said the digital fitness and health market remains fragmented, providing opportunities for Peloton to expand its market share.