Pelo tone On Wednesday, the company said it is expected to reinforce growth ahead of the vacation shopping season, introducing commercial equipment lines and raising subscriptions and hardware prices.
Improved assortment includes better audio, processors and WiFi from all machines. The newly refreshing plus line is one of the new features of AI -based tracking cameras, speakers, 360 -degree swivel screen and hands -free control.
Peter Stern CNBC said, “The product is called a cross training series because it is trying to help members.” So the product is designed to promote multi -field approach to this type of well -being regardless of the product you purchase. ”
Entrance to the Pelo Tone Office in Manhattan Midtown.
Eric McGregor | Lightrocket | Getty image
For the first time since the founding of the company, it is expected that PELOTON will return to sales growth after modifying the cost structure and preventing financial ruin over the past few years. Since the company is now refining the debt and creating a free cash flow again, we are now focusing on assortment, hoping that a better lineup will bring a wider lineup.
Stern said, “I think the product is more expensive than the previous product, but now it provides more value because it is getting strengths and heart solutions.” Our vacation season is going to come to us. We sell more than 60% of the unit for a year (during holidays) throughout the year … We can get a clear sense of how many months we have marked in the future, based on new people who are attracted to these wonderful new ones and the actions of existing members.
Fitness drug addicts are increasingly prioritizing the combination of heart and intensity in everyday life. It is foolish to switch between different types of classes without moving the screen, so some of Peloton’s original machines can be difficult.
Peloton’s manager tracking function.
Politeness: PELOTON
Peloton’s chief product manager, Nick Caldwell, said the modified assortment tried to solve this problem and other general complaints about the original lineup.
“We have integrated the largest swivel screen throughout 360 degrees. It was made for smooth transition from aerobic to various types. You can switch out of bicycles, treads, or rows.” “We also added voice control. We are no longer stupid with the button while adjusting the weight, skipping movement, pause with voice, and trying to enjoy exercise.”
This improvement will come out higher price tags, which welcomes some of the Wall Street, which Peloton said it took too long to adjust the price. Most hardware will rise to hundreds of dollars, and membership costs will increase. Peloton’s All-ACCESS members will increase from $ 44 to $ 49.99 a month, and App+will increase from $ 24 to $ 28.99 a month, and the app one will increase from $ 12.99 to $ 15.99.
How much the hardware price is raised is as follows.
- Bicycle: $ 1,695, at $ 1,145 for the refurbishment or $ 1,495 new
- Bicycle+: $ 2,695, $ 2,495 increased
- Tread: increased from $ 3,295, $ 2,995
- Tread+: increased from $ 6,695, $ 5,995
The original row of $ 3,295 is replaced by a new ROW+, which is $ 3,495.
PELOTON’s priorities have developed in the last few years. The machine has faced product safety issues, has long attracted Peloton’s profitability, and is willing to buy a limited number of consumers. Former CEO Barry McCarthy Spotify and Netflix The company did not provide growth management by attempting to focus on the product and to build a business around the app.
Stern co -founded now apologize Fitness+ and previously supervised fordThe subscription service aims to upgrade Peloton’s products to match the extensive class type with hardware.
Betting in business
In addition to improving the consumer business directly, PELOTON is releasing a new version of the new commercial equipment line with excellent durability of existing hardware.
The Peloton Pro series includes commercial versions of bicycles+, Tread+and ROW+and is sold in places with small gymnasiums such as hotels, apartment buildings, corporate wellness centers and country clubs.
In recent years, PELOTON has attempted several different strategies to build a business side of business through partnerships with hotels and universities. Peloton’s chief commercial director, Dion Camp Sanders, said that it is now one of the fast -growing parts of business.
Nevertheless, some industry critics say fellow tones are not suitable for the gym environment. The machine said that the company made a durable lineup because it cannot handle higher frequency use. In addition, we have recently created a new commercial division combined with PELOTON’s proposal and PRECOR, a fitness equipment company that was acquired in 2020.
Camp Sanders said, “This allows us to provide a fairly wide range of commercial fitness equipment and provide a wide range of requirements.” In addition to the aspirations of PELOTON in software and content, we can also obtain the reliability, durability, and quality of Precor’s Precor and Precor for services and repairs. I think it’s a very unique product because it can be provided. ”
While sales throughout the Pelo Tone have declined in the most recent accounting quarter, the commercial division has already returned to growth year -on -year, and it is expected to account for a higher percentage of total revenue over time, Camp Sanders said. He also added that it is an important marketing tool for the company.
Camp Sanders said, “The pello -tone equipment in the hospitality environment is the most productive test and lead generation source for consumer business. So consumers can first meet Pelo tone at a premium hotel, experience experience and fall into our system,” CAMP Sanders said.
“If we start to put a pello tone in more and more commercial environments, we think that it can be the end of the spear that can introduce consumers to the pello tone brand in more and more places. Then it can help to attract consumer business.”
Description: This article has been updated to include previous prices for Refers and new bicycles.
