Peloton is making some big changes to its pricing structure this summer, as its All-Access membership fee will be jumping from $39/month to $44/month on June 1. Meanwhile, exercise equipment like the Bike and Bike Plus are getting massive price cuts this week as Peloton hopes to get its expensive gear into more homes.
Previously sold for $1,745, the Peloton Bike will be available for $1,445. The Bike Plus is getting an even bigger price cut, down to $1,995 from $2,495. If you’re interested in the Peloton Tread, you’ll now find it down to $2,695 from $2,845. The new pricing structure only applies to customers in the United States, with other regions seeing different discounts (or none at all).
- Peloton Bike – New Price: $1,445 | Old Price: $1,745
- Peloton Bike Plus – New Price: $1,995 | Old Price: $2,495
- Peloton Tread – New Price: $2,695 | Old Price: $2,845
The big price drops are Peloton’s attempt to “increase market share” and slowly build up its base of monthly subscribers to its fitness platform. The All-Access plan is its most robust, offering live and on-demand classes for every product in the Peloton family. As of June 1, the cost of this plan will rise by $5, while the App Membership will remain steady at $12.99/month.
Why Is Peloton Changing Its Pricing Structure?
Peloton’s revised monetization scheme likely solves two problems. Over the past few years, the company has been ramping up production as it saw heightened demand for its premium workout gear. That demand, however, has begun to slow down – and now warehouses are filled with unsold Bikes. The price cut should help make the high-end products more competitive in a saturated marketplace.
The bigger reason is Peloton’s push for market share. As equipment makes its way into more homes, Peloton is hoping families will sign up for monthly fitness subscriptions. The service has seen massive growth over its lifetime and increasing its cost will help offset the expenses associated with enhancing the platform.
Whether or not the new structure will benefit your wallet depends on your situation. If you already own Peloton equipment, then the answer is simple –you’ll be paying an extra $60/annually for All-Access. But if you pick up a Bike at its new discounted price, the increased All-Access membership will eat away that $300 price cut after five years.