Peloton is rolling out a $3,200 rowing machine — thrice the price of different main rowers

Peloton on Tuesday stated it’s including a brand new train product to its lineup: a rowing machine that begins at $3,195. Shoppers who additionally wish to entry its vary of health courses must shell out one other $528 yearly. 

The struggling health firm is touting the machine, referred to as Peloton Row, for its “full-body cardio and energy” exercises. However health followers are decrying the machine’s value, noting that consumers may even want a full checking account. The Peloton rower sells for greater than thrice the price of competitor Idea 2, which is taken into account the gold standard of rowers and has a price tag of $990 for its entry-level mannequin. 

Different health tools makers additionally cost a lot much less for his or her rowers. NordicTrack’s high of the road mannequin goes for roughly $1,800, and machines from rivals equivalent to Aviron and Ergatta high out at round $2,500, whereas WaterRower’s “pure rower” unit begins at underneath $1,000.

There’s quite a bit on the road for Peloton, a one-time pandemic darling that misplaced its footing as Individuals ventured again into gyms and misplaced their style for dear residence train tools. To this point this yr, Peloton has had two rounds of layoffs and a administration shakeup, whereas its inventory has plunged 75%. 

Financial institution of America analysts suppose Peloton might promote upwards of 60,000 rowers subsequent yr and add round 25,000 subscribers, noting that the rowing market is barely 1 / 4 as giant as for operating and biking. 

“Peloton is focusing on the excessive finish of the rowing market given capabilities and value level, and Peloton might be unwilling to take a gross margin loss on the models given probably materials gross sales overlap with present Peloton subscribers,” they stated in a word.

Peloton stated it’s taking pre-orders for the brand new rowing machine, with supply anticipated in December. 

Some folks questioned the pricing of Peloton Row, taking to social media to complain that firm is charging an excessive amount of — particularly because the rower’s lineup of health courses requires a further expense of $44 a month, or $528 for one yr. 

“I can get a [Concept 2] for $1k,” one observer wrote on Twitter. “That value is simply DUMB.”

One other client stated it isn’t solely the worth, but in addition that Peloton is not offering financing choices to potential prospects, which in any other case might make the worth tag extra palatable.

Peloton defended its pricing, noting that the rower is designed to be a “premium expertise.” Among the many options the corporate is touting in its new rower: “individually calibrated” suggestions to assist customers enhance their approach; electronically managed resistance that allows “frictionless” strokes; and a swiveling display screen. 

“There is no such thing as a different linked health rower available on the market that can afford the identical quantity of content material,” spokeswoman Ben Boyd instructed CBS MoneyWatch. “The package deal of software program and {hardware} is totally unmatched.”

Barry McCarthy, a former Spotify govt who Peloton named CEO in February, additionally defended the stiff pricing for its tools at a Goldman Sachs occasion final week. 

“We have got a premium providing as a result of, let’s face it, you are not price-sensitive,” he instructed an analyst. “And folks such as you weren’t price-sensitive. And if we have now an important product, they are going to purchase it regardless.”

The value of Peloton’s new rowing machine begins at $3,195. Pre-orders within the U.S. begin instantly, with deliveries anticipated to start in December.


McCarthy additionally stated he expects the web residence health enterprise to rebound at the same time as COVID-19 eases across the U.S. and Individuals return to the health club.

“In the present day, the class is shrinking. Will it shrink over the long run? I do not suppose so. I believe that is a post-COVID phenomenon the place individuals are touring, going again to gyms, form of rediscovering the lives that they’ve gotten away from,” he stated. “However within the fullness of time, dwelling a wholesome life-style, I believe, is a part of our worth system, a part of the material of in the present day’s growing old financial system.”

Certainly, some Wall Road analysts stay bullish on Peloton’s prospects regardless of its slowing progress and a administration shakeup final week that noticed co-founders John Foley and Hisao Kushi leave the company

Oppeneheimer analysts stated in a analysis word this week that Peloton retains important aggressive benefits, together with expertise cultivating on-line communities, excessive client satisfaction scores and a enterprise mannequin that gives potential for substantial progress with a modicum of funding. 

The digital health and wellness market additionally stays fragmented, providing alternatives for Peloton to broaden its market share, the funding agency stated.

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