Almost every day, I run into people and read articles that struggle to understand and see how Peloton can be a viable business now and into the future. One of the main points that often comes up is the cost of the Bike and Tread. The other element is the features and minimizing the benefit and impact some features can have on the overall experience. For example the latest article I ran across is from Gavin over at Vice. Gavin is not understanding the simple yet impactful feature of the high-five feature once you have established friends and relationships through the platform.
First, let’s discuss the cost of the bike, it will cost you around $2800.00 for the bike once you are done with installation, taxes, and accessories. The monthly subscription will cost you $39.00 per month plus tax depending on where you live. Now let’s say you own the bike for 3 years and do at least 100 workouts per year.
$2,800.00 - Cost of Bike
+ $1,404.00 - Three years of subscription at $39.00 per month
$4,204.00 - Total expense over three years
Now, let’s break that down to the cost per workout. Total cost over three years of $4204.00 divided by 300 workouts (a three-year estimate we mentioned above). Based on these assumptions you’re looking at a price per workout of $14.01. Have you tried booking a class at most gyms or boutique cycling studios? They typically cost around $25 to $45 per class. In my case, I am almost at 1000 rides on the Peloton bike. Following the same math but spreading it out over my 1000 rides, the bike cost me $4.20 per workout. That does not seem very expensive when you also include the fact that I got stretching, strength, yoga, and bootcamp classes on top of that.
Now you also have to consider a key factor outside of the cost savings. The increased flexibility you get for having a Peloton Bike or Tread in your home has been transformational for me. I am nearing three years of working out multiple times per week. It is to easy to let life get in the way, and since having to leave your home is an extra step, it’s easy to say I will just do it tomorrow. Having the bike available in your house saves on travel time and lets you get your workout in when the time is best for you, not at the schedule of the gym or spin studio.
The best part of the Peloton experience and one that I can’t really apply a price tag on is the friendships we have built through this experience. When you combine the Peloton workouts with communication and collaboration with likeminded peers on Facebook, Instagram, Reddit, and other social media platforms, it transforms the level of engagement.
I have friends that I speak with on a weekly or daily basis to chat about the workouts, share personal stories, inspire or be inspired by others. With the Peloton Studios in NYC, we have come together from all around the world to ride or run. We often get together in the evening, enjoy meals, go to shows or concerts. It’s the friendships that have been created through the Peloton experience that has really made it priceless in my view.
These are relationships I would have never made if it was not for the common and transformation bond of the Peloton experience. If you want to experience the full power of the Peloton experience get the Bike or Tread, join the various social media groups based on instructors, training methods, etc, and make sure you at least once make a trip to the NYC Studios and ride live and if possible with friends you have made. Once you have you will truly understand the full Peloton experience.
DISCLAIMER: As of 11/29/2019, I currently own Peloton stock. My opinions are focused on my personal experience as a consumer of the brand since January 2017 and should not be utilized as investment advice.