Sales of at-home equipment losing momentum as gyms reopen and people stop exercising at home
The original Peloton Bike machine currently costs £1,350 in the UK), but the company slashed it by 20 per cent to US$1,495 (approximately £1,091).
The change in price applies to all of Peloton’s markets, including the US, UK, Canada, Australia and Germany.
The move marks the second time Peloton has lowered the price of its original Bike, as it cut the cost from around £1,640 to its current price in September last year. The machine is now the cheapest of all of Peloton’s Bike packages, which range from £1,350 to £1,795, while the more expensive Bike+ packages start at £2,295.
In a letter to shareholders, the company wrote: “We know price remains a barrier and are pleased to offer our most popular product at an attractive everyday price point.”
Peloton will also officially launch sales of its treadmill in the US, and resume sales in the UK and Canada following the approval of the machine’s repairs.
The Tread and Tread+ machines were recalled earlier this year following the death of a six-year-old child and more than 70 reports of adult users, children, pets and objects being pulled under the rear of the treadmill and resulting in serious injuries.
According to the company’s letter to shareholders, the Tread machine will be back on sale from 30 August. Peloton also plans to offer the Tread in Germany later this year and in Australia in the near future.
It comes as Peloton reported a wider-than-expected loss in its fourth-quarter results on Thursday, as the momentum of its sales growth slowed amid the easing of lockdown restrictions throughout the world.
Early in the pandemic, the fitness equipment maker saw its sales and stock price soaring as gyms closed and people turned to at-home fitness equipment to exercise.
But the company is now searching for other ways to keep its revenue growing and secure new customers. It plans to expand to new markets and is set to build its first US factory in Ohio in order to “diversify our manufacturing footprint”.