The news that Peloton’s stock is soaring amidst Billion-dollar buyout rumours (over 14 billion before stock surges), highlights the exponential success that the company has had in its 4-year rise to prominence. Peloton has sold well over 6 million bikes around the world, and counting. When Peloton first released their original model, many were shocked at the $2,000 plus price tag. But in 2020, Peloton proved that customers saw value in their purchase: they were happy to upgrade to the Bike Plus, an improved model with a bigger, rotating screen, to the tune of $3,295 Canadian. The bike also carries a monthly membership of $77 Canadian per month, to access the video and training services that give Peloton its competitive edge.
Not all of Peloton’s clients are those that can afford to drop $3,000+ on a bike. Many take advantage of the zero-interest monthly payment plan. Peloton is, without a doubt, a luxury, but one that has found its way to the mainstream market. So is it worth the hype?
It’s not a question of ‘if you try it, you’ll love it,’ feedback shows. Some have used the bike and noted nothing special about the product or its interactive components.
“I’d be more motivated watching a Kung-Fu episode while working out. Or maybe a Columbo re-run… the acting is better and it’s far more entertaining. I view it as a gimmick.” Said one forum contributor on the topic.
If it’s the recipe of live, interactive training from your home that works, you can get those kicks for much cheaper, too, argues another. “In the UK, $500 dollars would get you a good racing bike if you bought it outright, and a membership to a real club would be $8 per month. We have rides 2 to 3 times per week.”
Though those that argue that it is, in fact, an overpriced fad, can agree with their counterparts on one thing: if it works, it’s worth it.
“Overpriced is a subjective term.” Said one Peloton owner in discussion on Quora. “I think the real question is, will the Peloton be a positive ROI purchase for me?”
And in that context, the feedback is unanimous. Regardless of the fact that you can ‘get the job done’ for much less, Peloton works for those who have struggled to find results elsewhere. And if it works, it holds its value. After all, products are only worth what people are willing to pay for them. Peloton has done an excellent job of raising the value of their brand far above other competitors in the market. It’s pandemic proof, and much more than a 1-time purchase. So regardless of whether it’s a gimmick or a fad, the gimmick seems to be here to stay for the time being.