Citing rising supply chain costs and skyrocketing inflation, exercise equipment maker Peloton plans to increase the cost of its original Bike and Tread products by hundreds of dollars, according to published reports.
According to its website, Peloton will be tacking on a $250 delivery and setup fee for its Bike and a $350 fee for its Tread, bringing the cost of the products to $1,745 for the bike and $2,845 for the treadmill, beginning Jan. 31.
Peloton previously said the $250 and $350 fees were included in the total price of the equipment. The cost of Peloton's newer Bike+ product, however, is staying the same at $2,495, according to the company's website.
Prices for the company's products also appear to be increasing across the UK, Germany and Australia.
Peloton Chief Marketing and Communications Officer Dara Treseder said the price increases were the result of rising inflation and steeper supply chain expenses discussed during a recent meeting of company management.
"Right now, people are raising prices," Treseder said in a recording of the meeting obtained by CNBC. "Ikea just raised prices. We want to go in the middle of the pack."
The company does not want to appear to be pulling a "switch and bait" on customers, Treseder continued.
According to a company spokesperson, Peloton is being impacted by the same economic and supply chain challenges that are affecting many other businesses worldwide.
"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," the spokesperson wrote in a statement emailed to CNBC.
In August, Peloton had cut the price of its less expensive Bike product by about 20% to $1,495, as it hoped to appeal to more consumers with a cheaper option.
Peloton initially saw great success in 2020 amid gym closures and worldwide lockdowns; however, the company's growth has since stalled. After rising by more than 440% in 2020, Peloton stock prices fell by about 76% in 2021.
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