Peloton Launches Refurbished Bikes Program Just as Fitness Resolutions Begin
Peloton’s mission to grow its user base and make its connected fitness equipment more accessible continues
Peloton has a lot to prove in the new year, and as 2023 approaches, the fitness company is laying the groundwork to lure in as many members as possible. With a looming recession and fitness resolutions typically starting in January, Peloton has come up with the perfect plan: Peloton Certified Refurbished, which offers refurbished bikes in the United States and Canada.
The program, launched on December 26, is Peloton’s latest attempt to expand its audience while providing a cost-effective option for Peloton enthusiasts. The refurbished bikes will be available online or in showrooms and include delivery and set up.
A refurbished Peloton Bike will cost $1,145 under the program, a $300 savings when compared to a new Peloton Bike, and a refurbished Peloton Bike+ will cost $1,995, which is $500 less than a new Bike+. Financing is not available for the refurbished equipment and Peloton’s all-access membership will be sold separately.
Every refurbished bike is inspected, cleaned, and tested by the connected fitness company, and it comes with the same 12-month limited warranty as new Peloton bikes.
“We are excited to offer refurbished Peloton bikes at these new price points, opening the engaging Peloton experience to even more Members,” said Amanda Shulman, Vice President of Emerging Business & Strategic Partnerships. “All pre-owned bikes have been refurbished and checked to meet our rigorous quality standards, and our new program allows us to find these bikes a second home.”
Peloton has been toying with different methods to attract new customers and increase profits, part of CEO Barry McCarthy’s plan for the connected fitness company to find its “sweet spot.”
Earlier this year, Peloton announced a limited-time pricing experiment where a bike and subscription would be offered for a single monthly fee. If a member decided to cancel, Peloton would take back the bike and the customer could incur the delivery cost.
Peloton also extended its 30-day home trial offer to 100 days and emailed existing members $300 discount codes to use towards new equipment or share with friends and family.
McCarthy has acknowledged the secondary market — and sees it as an opportunity to grow its subscriber base. McCarthy stated on the company’s November earnings call that he expects private Peloton sales to become a source of operating leverage, and that Peloton is discussing ways to tap into the secondary market ecosystem. He pointed to the consumers who purchased a Peloton bike only to have it turn into a “potted plant” in their home. “They sold it in the secondary market, someone bought it, and then someone activates a subscription and becomes a monthly subscriber at zero cost to us,” McCarthy explained.
The interactive fitness company even rebranded its extended warranty program in order to allow consumers to transfer the warranty of its signature Bike or Tread if sold to a new buyer. The updated protection plan came to fruition after Google search trends data showed that demand for Peloton had waned.
Another daring move came earlier this year when Peloton reduced the price of some of its fitness equipment to lower barriers to entry. “We want more people to be able to afford our hardware. This is a strategic decision to play for scale and increase market share,” Peloton said at the time.
