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Peloton S-1

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Re: Peloton S-1

#201

Post by scarface74 »

realshowbiz wrote: post #81
tempsy wrote: post #18

It really makes we wonder how we could be on the verge of a recession when companies like this become successful? Maybe I'm just too cheap to ever buy something like this but it feels like a mass marketed luxury good that requires a decent level of consumer confidence to have succeeded.

On the other hand I wonder what effect easily accessible credit cards have on overall sales for products like this. On a personal level it would be a stretch for me to spend $2200 when I could get a used airdyne and an ipad for less than half.

Companies have been offering “0% financing” for decades regardless of economic conditions - see furniture stores and more recently phone companies.

I’ll probably end up buying a Mid range NordicTrack stationary bike ($1800) within the next year to go along with my NordicTrack treadmill and elliptical. I don’t currently subscribe to IFIT, but I might seeing that I could potentially use it across three pieces of equipment.

The IFIt modules are an optional piece for the elliptical and treadmill and I believe it is built into the elliptical.

As far as cost, between the cardio equipment I have (and plan on purchasing), the kettlebells, weight bench, weight bars, tv, wall mount, AppleTV, etc, by the time all is said and done, I will have spent close to 8 grand.

It’s well worth it for the convenience of just being able to go to the spare bedroom and workout anytime that we want to while catching up on TV or in my case watching technical videos without having to go through the ceremony of going to the gym.

Re: Peloton S-1

#202

Post by scarface74 »

dlkf wrote: post #169
gamblor956 wrote: post #47

Earlier quoted context omitted.

This is nothing like Juicero. Peloton addresses two real needs in the exercise marketplace: home-based classes, and high-quality exercise machines. It simply combined both into one product. There is huge demand for the former, especially from white-collar workers with high demands on their free time, and a a fair amount of demand for the latter. At $2000, a Peloton bike is $1000 to $2000 cheaper than the cheapest car…

> There is huge demand for [home-based classes], especially from white-collar workers with high demands on their free time I suspect people are overestimating this part of Peloton's market. All the people I know who spin value being a part of the community: the camaraderie of working out with other people, chatting after the class, etc etc. It's more like going to church than going to the cinema.

Yes because “all the people you know” is a representative sample.

Re: Peloton S-1

#203

Post by scarface74 »

gnopgnip wrote: post #45
Alex3917 wrote: post #29

Earlier quoted context omitted.

On the surface this is basically the Juicero of fitness equipment. If you want a good piece of workout equipment, buy a Concept2 erg. If you want a bike, you can get a carbon-frame bike for the same amount of money and then just get a trainer for it. Ostensibly there is zero reason for this to exist. The one argument in its favor is that youth sports are usually very heavily subsidized by masters sports. So if you we…

A spin bike is not really the same thing as a bike on a trainer because of the social aspect, and the classes. And the cost of a Peloton and the subscription is less than traditional spin classes. I am surprised that people are willing to spend 2x-10x as much as competing products when you look at the total cost.

Isn’t a big assumption that people actual desire “to be social”? I’m a former part time fitness instructor who spent 15 years in gyms all across the metro area, only ran outside for races with friends, and they were my social circle, but now as an older married man in my mid 40s, I have no interest in the gym scene. I like having a home gym with cardio equipment and weights.

But as far as spending more than the functional equivalent, do you have the cheapest house that would give you shelter? The cheapest car? The cheapest phone?

Re: Peloton S-1

#204

Post by gnopgnip »

scarface74 wrote: post #203
gnopgnip wrote: post #45

Earlier quoted context omitted.

A spin bike is not really the same thing as a bike on a trainer because of the social aspect, and the classes. And the cost of a Peloton and the subscription is less than traditional spin classes. I am surprised that people are willing to spend 2x-10x as much as competing products when you look at the total cost.

Isn’t a big assumption that people actual desire “to be social”? I’m a former part time fitness instructor who spent 15 years in gyms all across the metro area, only ran outside for races with friends, and they were my social circle, but now as an older married man in my mid 40s, I have no interest in the gym scene. I like having a home gym with cardio equipment and weights. But as far as spending more than the funct…

If you have no desire to be social you would most likely not buy the internet connected and subscription bundled spin bike, and get a much cheaper bike without those features. Or by a better quality one with a power meter for less money.

Re: Peloton S-1

#205

Post by scarface74 »

gnopgnip wrote: post #204
scarface74 wrote: post #203

Earlier quoted context omitted.

Isn’t a big assumption that people actual desire “to be social”? I’m a former part time fitness instructor who spent 15 years in gyms all across the metro area, only ran outside for races with friends, and they were my social circle, but now as an older married man in my mid 40s, I have no interest in the gym scene. I like having a home gym with cardio equipment and weights. But as far as spending more than the funct…

If you have no desire to be social you would most likely not buy the internet connected and subscription bundled spin bike, and get a much cheaper bike without those features. Or by a better quality one with a power meter for less money.

There is a difference between interacting with people and being around people. For instance, you can enjoy the camaraderie of other people doing the same thing and not actually having to engage in meaningless smalltalk around socially acceptable safe non controversial topics with people you don’t have anything in common with.

I loved teaching classes with 50+ people and was completely comfortable. But I hate interacting with large groups in more social settings.

Re: Peloton S-1

#206

Post by kevstev »

JumpCrisscross wrote: post #91
gamblor956 wrote: post #62

Earlier quoted context omitted.

Radical idea: Peloton's target market is the kind of person who is willing to spend $2000 on an indoor spin bike either as their primary mode of exercise or as one of many bikes they own. Especially people who want to spin during times of inclement or excessive warm weather. The Peloton may not make much sense to people living in pleasant cycling meccas on the West Coast, but east of the Rockies the weather is a lot…

> Especially people who want to spin during times of inclement or excessive warm weather New Yorker here. If I had the space I’d totally get one of these.

You might appreciate this twitter thread: https://mobile.twitter.com/clueheywood/status/10896997623312...

Re: Peloton S-1

#207

Post by magic_beans »

Japhy_Ryder wrote: post #190
pattisapu wrote: post #65

Earlier quoted context omitted.

I have it and I like how the whole package works together -- in particular, how certain teachers are very careful to show how to keep good form for your back etc. When I see a guy on the same exact machine as me, showing bad form like a slightly curved back or whatever with the heels, and then correcting to the proper form, referencing the same bike, on a giant Android tablet in front of me, that is very helpful. And…

Want to know another awesome product? An actual road bike. You can, like, go outside and stuff.

Not really an option for a lot of people. Mobility issues might be a problem, environmental issues, personal safety issues, etc.

Re: Peloton S-1

#208

Post by etjossem »

scarface74 wrote: post #197
etjossem wrote: post #158

Earlier quoted context omitted.

Instead of $1,995 up front, it's $3,783 over 39 months due to a subscription contract bundled with the financing. This is a very clever way to claim "no interest" but actually charge 27% APR. There are absolutely customers who buy this but can't afford it.

And this is no different than the typical phone financing plan. You pay for the phone over 24 months but they “bundle” the cost of an additional line. You would pay for the cost of the line over 24 months but no one would call that “interest”. You could buy the phone outright and just use it over WiFi just like you can use a Peleton without the subscription. But, in both cases, it reduces the functionality of the pro…

In both the case of the phone and the Peloton, it allows someone who can't afford the item to pay for it on an installment basis. On an individual level that access to credit might be useful, but it's another form of leverage which is not always a great indicator.

In fact, if people are making use of that option unusually often, economists get worried. Prior to a recession, consumers often feel more confident (and take on more financial obligations) than they have the resources to keep up with.

Re: Peloton S-1

#209

Post by tempsy »

etjossem wrote: post #208
scarface74 wrote: post #197

Earlier quoted context omitted.

And this is no different than the typical phone financing plan. You pay for the phone over 24 months but they “bundle” the cost of an additional line. You would pay for the cost of the line over 24 months but no one would call that “interest”. You could buy the phone outright and just use it over WiFi just like you can use a Peleton without the subscription. But, in both cases, it reduces the functionality of the pro…

In both the case of the phone and the Peloton, it allows someone who can't afford the item to pay for it on an installment basis. On an individual level that access to credit might be useful, but it's another form of leverage which is not always a great indicator. In fact, if people are making use of that option unusually often, economists get worried. Prior to a recession, consumers often feel more confident (and ta…

Phone is very different IMO. I always lease my phone not because I can’t afford to buy it outright but because the upgrade cycle is so short (a year with iPhones) that if you are someone who likes having a new phone then it makes more sense to just lease one and upgrade whenever you want than to buy it and deal with the hassle of selling it later on.

The equation has changed more recently as smartphone innovation has really slowed and very incremental. In either case you can just keep you phone for 18 mo and buy it outright.

Re: Peloton S-1

#210

Post by scarface74 »

tempsy wrote: post #209
etjossem wrote: post #208

Earlier quoted context omitted.

In both the case of the phone and the Peloton, it allows someone who can't afford the item to pay for it on an installment basis. On an individual level that access to credit might be useful, but it's another form of leverage which is not always a great indicator. In fact, if people are making use of that option unusually often, economists get worried. Prior to a recession, consumers often feel more confident (and ta…

Phone is very different IMO. I always lease my phone not because I can’t afford to buy it outright but because the upgrade cycle is so short (a year with iPhones) that if you are someone who likes having a new phone then it makes more sense to just lease one and upgrade whenever you want than to buy it and deal with the hassle of selling it later on. The equation has changed more recently as smartphone innovation has…

Leasing is different than what the phone companies are doing now. They just take the retail price of the phone and divide it over 24 or 36 months if you want to cancel your included service contract early, you pay off the remaining balance of your phone. They often allow trade ins or upgrades as an option, but there is functionally no different from 0% financing 24 months with a phone + service plan than 0% financing + subscription with Peleton.

I have a 128GB iPhone 6s from 2015 that my son is still using and will at least get the current version of iOS through September 2020. Phones have been “good enough” since the 2013 iPhone 5s.

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