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The peloton will tack on hundreds of dollars in fees to its Bike and treadmill, citing inflation

The peloton will tack on hundreds of dollars in fees to its Bike and treadmill

January 18, 2022: -Peloton is about to start effectively charging customers more for its original Bike and Tread products, which cites rising inflation and heightened supply chain costs.

Beginning January 31, the company will be asking customers to pay an additional $250 for delivery and set up for its Bike, and an additional $350 for its Tread, according to a banner on its website. That can bring the costs for those products up to $1,745 and $2,845, respectively.

Peloton said previously that the $250 and $350 fees for delivery and assembly were included in the total price of the Bike and Tread.

According to its website, the price of Peloton’s newer Bike+ product, at $2,495, is not going to change.

In the U.K., Germany, and Australia, Peloton has the same messaging on its website that costs will start January 31.

In a recent meeting among company management, Peloton’s chief marketing and communications officer, Dara Treseder, said the changes were because of growing inflation and higher supply chain expenses.

“Right now, people are increasing prices. Ikea just raised prices. We want to go in the middle of the pack,” said Treseder, according to a recording of the meeting that CNBC obtained.

She further said that the company didn’t want to be seen as doing a “switch and bait” on customers.

A Peloton spokeswoman told CNBC in an emailed statement, “Like many different businesses; Peloton is impacted by global economic and supply chain challenges that are affecting the majority, if not all, businesses worldwide.”

“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,” the spokeswoman said.

The $39.99 subscription fee that connected fitness users pay for on-demand content will remain the same.

In August, Peloton had cut the price of its less expensive Bike product by nearly 20% to $1,495, as it hoped to appeal to more consumers with a cheaper option.

After witnessing increasing demand from consumers looking for at-home workout equipment in 2020, Peloton’s momentum has stalled considerably in the latest months. Its stock has taken a hit, too. Shares decreased about 76% in 2021, after increasing more than 440% the prior year.

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