Once upon a time, you needed a monthly fee and a contract to walk into a gym. That situation have shifted with the home fitness revolution. Hardware is bought only once, and kept forever.
Digital fitness complicates things further. Not only do you buy the hardware but also the ability to use it on a content platform. To understand what buying a Peloton actualy costs, beyond the sticker price, you have to dig into a subscription economy that uses hardware as its way in.
Understanding True Peloton Membership Costs
Upfront Hardware Costs
Upfront costs is buried behind marketing materials that focus on monthly fees. Most people think the $39 or $44 per month is all you pay. They forget to factor in starting cost for device itself.
Depending on what you get, it’s anywhere from $249 to $4,295 upfront. You have options here: there’s the original Bike, the new Bike+, the Tread, and the Guide. All of these devices opens the door to the same ecosystem but at different price points.
Quality and interactivity differentiates the tiers. Deciding your own level of commitment will help you calculate actual ownership costs. But what’s the biggest line item?
That would be hardware. At full-price, the original Peloton Bike retails for about $1,445. This include magnetic resistance and a fixed screen.
The new Bike+ retails for $2,495. For that extra coin, you get a rotating screen, an auto-follow resistance system, and connection to leaderboards. The Tread is even pricier, floating just under $4,295.
That steep curve means a higher upfront cost reduce the financial pressure on your monthly subscription. You’ve made a big bet on the platform; now you don’t need to put as much financial pressure on month-to-month sub. If you opt for the lower-cost option, the Guide ($249), you flip that dynamic.
Monthly Subscription Tiers
You get a lighter upfront hit but need to supply your own phone/tablet. Monthly subscriptions are where the long-term financial picture clarifies Peloton has two subscription options. The base App Membership is $13 per month and provides access to all classes streamed to your device (laptop, phone, Peloton bike/tread).
Outdoor workouts, meditations, yoga, and strength class are included. This is ideal if you have some sort of workout equipment at home or just want to use your own devices. The All-Access Membership is priced at $44 a month.
It’s all content from the App Membership plus on-demand and live classes on the actual Peloton machine itself. Over time, that $31 more per month work out to $372 per year. That price is just for a specific group of classes designed for bike (or soon, tread).
It also includes the convenience of the fully-integrated hardware experience.
Shipping and Delivery Fees
Then there’s the added cost of shipping and delivery. For the Bike and Bike+, you’ll pay an additional $198 for standard white-glove delivery that unboxes, sets up and removes all packing materials.
It’s not optional, so you can’t opt out if you prefer self-installation. Because the Tread is heavier and more complex, its delivery fee also higher. Certain offers include free shipping, though these are always limited-time deals.
Don’t bank on getting free shipping via a sale. Instead, it’s better to plan ahead and budget for complete delivery price upfront. That way, the big machine will get delivered in one piece and be good to go.
Accessories and Maintenance
When accounting for overall costs, it’s easy to overlook maintenance and accessories. Yes, the bikes are pretty much set-and-forget, until something breaks and you need a replacement part. Then there’s the grips, which (naturaly) will need replacing after some time.
Or perhaps you’ll want a screen cleaner to avoid glare. And then there’s all those official Peloton accessories that many riders end up purchasing: A mat? Dumbbells?
Resistance bands? Those can certainly add to the cost. There are third party alternatives, often at lower prices.
But these won’t always play as nicely on platform. If you’re splurging on the Bike+, you might consider getting a mat for the larger, motorized bike. All these costs adds up quietly during your first year of ownership.
Long Term Value Proposition
When you’re thinking long term, if you intend to keep the service for several years, then your subscription will take up most of your budget. Eventually, you’ll have paid off the initial purchase price of the hardware. In the case of the bike, it costs $1,445, plus an All-Access membership for three years: That’s around $2,971.
Spread across thirty-six months, that comes out to about $82 per month. This compares favorably against your average gym membership, which could easily be between $50 and $100 per month (and you won’t even own nothing). You pay more up front; you get to accumulate some equity on a nice piece of kit.
More than that, though, what keeps people using Peloton is the quality of the content itself. The community, and the classes, keep you locked into the ecosystem. And once you’ve got that, you rationalize the monthly expense.
Commitment and Engagement
But will the content keep you engaged enough to pay for it? Because fitness isn’t a purchase, it’s a habit. If the classes don’t push you to sweat, then the hardware is sitting there doing nothing.
And that’s why the subscription business model succeeds: It rewards consistency. You’re paying someone to force you to get started, even though you might not feel like it right now. If the program gets you moving, then the cost-per-workout decreases considerably.
If it just collects dust, well, then the cost is sunk. Consider what your preferences and discipline levels was before purchasing. The best deal is the one you’ll use.
