“Not-so-transitory” inflation and supply constraints are resulting in additional costs for Peloton Interactive Inc (NASDAQ: PTON), and the company plans on passing it on to the customers from January 31st.
Peloton to raise prices
Peloton customers will have to bear another $250 in charges to have the exercise bike delivered and set up at the place of their choice. For the flagship treadmill, the U.S. company will charge an additional $350 from next month, confirms a notice on its website.
Following the price hike, Peloton Bike will cost $1,745 in total, while its Tread will have a $2,845 tag attached. In an emailed statement to CNBC, Peloton’s spokeswoman said:
Like many other businesses, Peloton is being impacted by global economic and supply chain challenges. Even with these increases, we still offer the best value in connected fitness, and offer consumers various financing options that make Peloton accessible to a wide audience.
A similar increase in price will go into effect on January 31st in Australia, Germany, and the United Kingdom as well.
Bike+ will cost the same
On the plus side, however, the $2,495 price tag on Peloton’s Bike+ will remain unchanged. Users won’t have to pay more than the current $33.99 in subscription fee for on-demand fitness-related content either.
Peloton was a notable beneficiary of the pandemic that increased demand for at-home exercise equipment. In recent months, however, it’s been giving up gains, with the stock down 75% since mid-July.
In November, the New York-based company lowered its guidance for the full year, citing supply issues and softening demand. On January 24th, Old Dominion Freight will take Peloton’s place on the Nasdaq 100 index.
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