Peloton Interactive (PTON) has hit the skids in recent months, hurt by people returning to their offices, the high price of its stationary bikes and delays in shipping them.
The company’s share price has plunged 79% in the past six months. To stem the tide, Peloton is testing a new pricing policy, The Wall Street Journal reports.
Starting Friday, some Peloton stores in Texas, Florida, Minnesota and Denver will charge a single monthly fee that encompasses both the bike and a monthly subscription to the company’s online exercise classes, according to The Journal. Customers can cancel and return their bikes for no charge.
The chosen stores will sell bikes and subscriptions for $60 to $100 month for a limited time, as Peloton sees how well the new strategy catches on.
Peloton’s traditional sales strategy has been to sell bikes and subscriptions to its classes. Peloton’s bikes start at $1,495 plus $250 for delivery and set-up. And subscriptions now run at $12.99 per month.
TheStreet.com listed many of Peloton woes in a story last month. They include waning demand, halted production and wide-scale treadmill recalls. The company pushed out its chief executive last month and decided to fire over 2,800 employees.
On top of business problems, Peloton also had to navigate a number of public relations crises. In the fall and early winter, TV shows like "Sex And The City" sequel "And Just Like That" and "Billions" showed characters experiencing heart attacks on a Peloton bike. Then there was the death of a six-year-old child who got pulled into one of the Peloton treadmills last March.
And last month, the Financial Times reported that company executives have been concealing rust on Peloton bikes with a chemical solution and selling them to customers.
"We have not found evidence or received member complaints that this specific issue has presented a problem," a Peloton representative told the FT.
