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mrmoose

Member
Nov 13, 2017
21,190
Someone in the twitter comments said that Pelaton was actually more affordable before and they only got traction when they raised the price and made it a premium subscription. Is that true?
 

Zoe

Member
Oct 25, 2017
14,266
Someone in the twitter comments said that Pelaton was actually more affordable before and they only got traction when they raised the price and made it a premium subscription. Is that true?

"It was interesting psychology that we teased out," Peloton CEO John Foley recalled in an interview last year with Yahoo Finance. "In the very, very early days, we charged $1,200 for the Peloton bike for the first couple of months. And what turned out happening is we heard from customers that the bike must be poorly built if you're charging $1,200 for it. We charged $2,000 dollars for it, and sales increased, because people said, 'Oh, it must be a quality bike.'"
 

harry the spy

Member
Oct 25, 2017
3,085
I don't know if it has been posted already but please watch the Eva Victor parody of it (she is a national treasure)
Edit: missed it, it was posted. All is well
 
Oct 27, 2017
21,545
Yikes. So they increased prices 2x and got more sales because people were tricked into thinking it was somehow built better? Did they actually put the money back into the bike itself or did that just up their profit margin.

I think you know the answer to that. The funny thing is that they reported a $245.7 million loss for 2019. They lost $47.9 million in 2018.
 

lenovox1

Member
Oct 26, 2017
8,995
I think you know the answer to that. The funny thing is that they reported a $245.7 million loss for 2019. They lost $47.9 million in 2018.

They're spending all of their money on marketing and retail space (as a "showroom" concept). Lord knows how much that awful ad cost.

Though, in reality, the showrooms only have to be the size of a literal walk-in closet. They have two products and some co-branded gear. They don't even need physical mall space, TBH.

All of it is just going to ads.
 

Messofanego

Member
Oct 25, 2017
26,189
UK
This Twitter thread by Amy Hoy explains why the Peloton advert is creepy, because of copywriting and the perspective that she's talking to us: