Placing the blame squarely on the shoulders of supply chain challenges and the rise in inflation, Peloton announced it will be raising prices by hundreds of dollars in just a couple of weeks.
Starting January 31, Peloton raise the price of delivery and setup of its Bike by an extra $250, while its Tread will see its delivery and setup spike by an extra $350, sending the total prices for those products to $1,745 and $2,845, respectively.
Those delivery and setup fees were not an extra charge in the past, but rather included in the products’ pricing.
The Bike+ will not see its $2,495 price tag change. The company’s $39.99 monthly subscription fee for on-demand content will also remain unchanged.
The price hikes were announced by a banner on the company’s website. As for the reason, that was reported by CNBC, who obtained a recording of a meeting led by Peloton chief marketing and communications officer Dara Treseder.
“Right now, people are raising prices. Ikea just raised prices. We want to go in the middle of the pack,” Treseder said on the recording.
When asked for comment, the fitness company responded to CNBC with 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,” the statement read. “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.”
Peloton’s growth exploded amid the pandemic as people searched for ways to stay in-shape without the aid of their local gyms. The company’s stock rose over 440% in 2020, but slid back last year, losing about 76%. Then in November, Peloton once again blamed the supply chain as it slashed its expectations for the year.