News

The Wall Street Journal: Peloton to test new price plans in effort to turn the company around

Peloton Interactive Co.’s new chief executive is looking to overhaul the stationary-bike maker’s pricing strategy in a bid to turn around the company.

The company on Friday will start testing a new pricing system in which customers pay a single monthly fee that covers both the namesake stationary bike and a monthly subscription to workout courses. If a customer cancels, Peloton
PTON,
-4.05%

would take back the bike with no charge.

Select Peloton stores in Texas, Florida, Minnesota and Denver will for a limited period offer a bike and subscription for between $60 and $100 a month, an experiment that aims to find a price proposition that will help return Peloton to profitability without crippling growth.

If adopted, the model would be a major shift for Peloton, which built a business around selling high-price, screen-equipped stationary bikes alongside $39-per-month subscriptions to its connected workout classes. The idea: sell Peloton as a fitness service that can be canceled anytime rather than as a major purchase with a subscription attached.

An expanded version of this article appears on WSJ.com.

Popular stories from WSJ.com:

Endurance, Ernest Shackleton’s Lost Ship, Found in Antarctica After 107 Years

Russian Airstrike Hits Maternity Hospital in Ukrainian City of Mariupol

Russia Ramps Up Attacks After Deadly Hit on Maternity Hospital

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:News

Leave a reply

Your email address will not be published.