A Peloton is NOT a Normal Christmas Present

A Peloton is NOT a Normal Christmas Present

This holiday season, Peloton came under fire for a “sexist” ad, in which a man gave her wife a Peloton bike as a gift. 

I never thought the ad was sexist, because all I could think was, “why am I seeing an ad for a $3000 bike as if it’s a normal gift to give?”

 

peloton home screen
image from Peloton website on 12/11/19

That to me is the real issue.

Why? Because Peloton makes their equipment seem “accessible.” But make no mistake, a Peloton bike starts at $2245 and still requires a separate monthly membership to access classes. 

The membership part is really what irks me. The membership is $39/mo, but there is NOTHING that stops Peloton from raising those prices in the future! And this is after you’ve bought a four-figure piece of equipment for home use!

The Peloton Tread is even worse. Prices for the Peloton Tread start at a whopping $4295 and again, still have that monthly membership cost.

The financing is over 39 months, but the equipment only includes a 12 month limited warranty.

That means you’ll pay for this equipment for over THREE YEARS. IF it breaks after a year? You have to pay to fix or worse, you’re out of luck and still on the hook.

Perhaps you’re thinking that other at home equipment can cost this much too. And maybe it does, but I don’t see them positioned as an obvious gift, or with the recurring cost of membership fees. Maybe that’s a good business model. The reality is that a Peloton is a luxury bike being marketed as a middle class at home workout.

The “monthly payment”  for the Peloton tread (before the membership fee!) is more than our family gym membership which includes fitness classes, a pool, included childcare (at NO extra cost), showers etc. The idea that I would pay more than that for one piece of equipment and no one to watch the kids? Preposterous. And we’re not on the hook for 39 months.

Peloton Stocks Going Down?

The research firm Citron Research is also highly skeptical of Peloton, and says it’s overpriced now. Peloton has had the “first mover” advantage, meaning it was the first company to “do” what Peloton does. This however means there is room for other companies to make more affordable options. 

Another point is that anyone can access the Peloton classes for $12.99 a month. Personally, I DO think that’s a good deal. You can use your own at home bike, like this $260 one  and access the same as Peloton bike owners. Citron also cites that price discrepancy as an issue, because it charges more to those who have bought the equipment. 

And while Citron Research has previously called companies losing value (an example would be FitBit), we will have to see what time says. I personally will not be giving the gift of Peloton, and have a hard time seeing how any “normal” person would choose such a luxury bike.

What do YOU think about Peloton?
Here are some additional images from their website...

Pay attention to the fine/small print in each of these….

image from Peloton website on 12/11/19
image from Peloton website on 12/11/19

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