Here is a novel idea. Peloton Interactive Inc. (NASDAQ: PTON) cannot sell enough of its new bikes to make a profit. As a solution, it will rebuild old ones and sell them at a discount. Used bikes likely have lower margins than new ones. And Peloton gets to compete with itself, as if it does not have enough competition already. The decision is another example of how badly new management has and still does run the company.<\/p>\n
According to Bloomberg, the used bikes will sell for as much as $500 lower than the new models. That puts the price range between $1,145 and $1,995. To make matters worse, financially, people get free delivery and a warranty. The company\u2019s subscriber service, which lets people have exercise classes with instructors, among other things, still will carry a fee. (People can get a 30-day trial period.)<\/p>\n
Peloton sells bikes through Dick\u2019s Sporting Goods and Amazon, and it almost certainly gives them a percentage of the price. Moreover, the Amazon Peloton section has bikes from Schwinn available. The base price for these is $499. It is another pit Peloton has fallen into.<\/p>\n
Peloton offers other discounts for its exercise equipment and subscriptions on its website. It is as if Peloton cannot sell anything at full price.<\/p>\n \t\t\t\t