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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

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

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