Peloton Set to Raise Prices Amid Inflation

Peloton Set to Raise Prices Amid Inflation

Peloton (NASDAQ: PTON) revealed that inflation and continuous supply chain issues are forcing it to raise the price of its lead equipment. Just five months ago, the company had recently reduced the cost of the bike as a means of boosting the decrease in sales. Customers are set to begin paying more for the company’s Bike and Tread products by the end of the month.

Starting January 31, Peloton will begin charging a USD250 delivery and setup fee for its flagship Bike and USD350 for its original Tread, according to its website. These fees were previously included within the purchase of the machines.

Amid these changes, the price of the bike will rise to USD1,745 and the Peloton Tread will soon surge to USD2,845. In a statement, Peloton said that “continued constraints are driving up costs.”

“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,” it said. “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.”

In November, the American exercise equipment company cut its full-year guidance for 2022 following a “softer than anticipated” start to the second quarter as well as “challenged visibility” in its operating performance amid the covid-19 pandemic.

The company forecasts a USD4.4 BIllion to USD4.8 Billion total revenue for the fiscal year 2022, down from the previous outlook of USD5.4 Billion.

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