Peloton is about to begin effectively charging customers more for its original Bike and Tread products, citing rising inflation and heightened supply chain costs.
Beginning Jan. 31, the company will be asking customers to pay an additional $250 for delivery and setup for its Bike, and an additional $350 for its Tread, according to a banner on its website. That will bring the costs for those products up to $1,745 and $2,845, respectively.
Previously, Peloton said that the $250 and $350 fees for delivery and assembly were included in the total price of the Bike and Tread.
The price of Peloton’s newer Bike+ product, at $2,495, is not going to change, according to its website.
In the U.K., Germany and Australia, Peloton has similar messaging on its website that costs will be going up starting Jan. 31.
During a recent meeting among company management, Peloton’s chief marketing and communications officer, Dara Treseder, said the changes were due to growing inflation and higher supply chain expenses.
“Right now, people are raising 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 was obtained by CNBC.
She added 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 other businesses, Peloton is being 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.
In August, Peloton had cut the price of its less expensive Bike product by about 20% to $1,495, as it hoped to appeal to more consumers with a cheaper option.
After witnessing surging demand from consumers looking for at-home workout equipment in 2020, Peloton’s momentum has stalled considerably in recent months. Its stock has taken a hit, too. Shares fell about 76% in 2021, after rising more than 440% the prior year.
In November, Peloton slashed its full-year outlook due to ongoing supply chain constraints and softening demand. Analysts have said they anticipate the company to have had a weaker holiday, too, which could prompt another cut to its annual guidance.
Last Thursday, Nasdaq said Peloton’s stock would be replaced by Old Dominion Freight in the Nasdaq 100 index, effective Jan. 24.
This story is developing. Please check back for updates.