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Peloton to charge $95 activation fee for used bikes

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Re: Peloton to charge $95 activation fee for used bikes

#21

Post by jlund-molfese »

bdcravens wrote: post #9

Peloton is both a product manufacturer and a service provider; setup fees are common with many service providers. For example, if you bring a phone you bought elsewhere to your carrier, they'll charge a fee to activate it for their network.

I don't think it's that common with companies that are both manufacturers and service providers.

That'd be like Apple charging you $75 if you wanted to use iCloud+. It makes used products less valuable, which ultimately hurts your brand image in the long-term, even if you might be able to boost services revenue for the next quarter or two.

Re: Peloton to charge $95 activation fee for used bikes

#22

Post by Sanzig »

bdcravens wrote: post #9

Peloton is both a product manufacturer and a service provider; setup fees are common with many service providers. For example, if you bring a phone you bought elsewhere to your carrier, they'll charge a fee to activate it for their network.

I have literally never had this experience with a mobile carrier (Canada). There is an account activation fee (usually waived if you sign up online), but once the account is activated you can freely swap the SIM between as many phones as you like.

Re: Peloton to charge $95 activation fee for used bikes

#24

Post by tiahura »

RIMR wrote: post #12

>The Bike and Tread maker said the secondary market is an “important source” of new members. So why are you creating a $95 barrier-to-entry for those new paying members? Are you really so strapped for cash that you want to drive potential customers to your competitors, or entirely away from your online subscription? If people are selling their Pelotons, and the buyer is buying a subscription, Peloton should be gratef…

Probably because the numbers show so few people reup that getting $95 upfront is Peloton’s optimal strategy.

Re: Peloton to charge $95 activation fee for used bikes

#25

Post by matwood »

cyberpunk wrote: post #4

... Isn't capitalism great? I remember a thread on here a while back where some folks were sharing their peloton-alike setups and sadly I've lost the bookmark for it. Isn't it possible to hook a road bike up to some kind of 'bike treadmill' or such and go on virtual rides (maybe with an iPad or a tv or something infront of it?). With the kinds of money Peloton are charging, it did seem like a much better deal, and yo…

It does seem odd for Peloton to put any friction up to a new subscriber, given that's where they really make their money.

There are plenty of other setups with various levels of connectedness. Cyclists I know love Zwift, though they also sell a bike type thing and their kickers are not exactly cheap.

I'd argue that Peloton is likely still the best at home spin studio replacement if that's what people are looking for.

One last point is that I think Peloton gets unfairly targeted for non-use. Gyms, all fitness equipment, even things like boats and motorcycles are frequently bought and never used. Just how consumerism works.

Re: Peloton to charge $95 activation fee for used bikes

#26

Post by FredPret »

cyberpunk wrote: post #4

... Isn't capitalism great? I remember a thread on here a while back where some folks were sharing their peloton-alike setups and sadly I've lost the bookmark for it. Isn't it possible to hook a road bike up to some kind of 'bike treadmill' or such and go on virtual rides (maybe with an iPad or a tv or something infront of it?). With the kinds of money Peloton are charging, it did seem like a much better deal, and yo…

Capitalism is fantastic. Capitalism will also sell you a regular bike with a bike treadmill if you think that's a better solution. Capitalism gave us a million different ways to get in a workout - Peloton is just one. Nobody's making you sign up for biking as a service.

It sounds like a dumb idea to me but some people have one and love it.

Re: Peloton to charge $95 activation fee for used bikes

#27

Post by RIMR »

CivBase wrote: post #10
cyberpunk wrote: post #4

... Isn't capitalism great? I remember a thread on here a while back where some folks were sharing their peloton-alike setups and sadly I've lost the bookmark for it. Isn't it possible to hook a road bike up to some kind of 'bike treadmill' or such and go on virtual rides (maybe with an iPad or a tv or something infront of it?). With the kinds of money Peloton are charging, it did seem like a much better deal, and yo…

> Isn't capitalism great? Does "capitalism" now just mean that businesses can do whatever they want? Consumer rights are awful in the United States, but that isn't because our economy is capitalistic. It's because our government is inept.

>Consumer rights are awful in the United States, but that isn't because our economy is capitalistic. It's because our government is inept.

Well, look at the precise manner in which our government is inept. Capitalism is basically a religious ideology here. Any time anyone suggests anything pro-worker or pro-consumer, there are no shortage of people who will call it "communism", and demand completely unregulated corporate power as the solution, claiming that to be the path to free market capitalism.

We have decided that making money = success, and do absolutely nothing when companies charge $95 just to allow you the opportunity to subscribe to a paid service, as a punishment for buying your equipment used.

So yes, Capitalism as an economic practice can exist in tandem with strong worker and consumer rights and protections, but Capitalism as an ethos is the reason why we are lacking so many worker and consumer rights and protections.

Re: Peloton to charge $95 activation fee for used bikes

#28

Post by tiahura »

repeekad wrote: post #15
cyberpunk wrote: post #4

... Isn't capitalism great? I remember a thread on here a while back where some folks were sharing their peloton-alike setups and sadly I've lost the bookmark for it. Isn't it possible to hook a road bike up to some kind of 'bike treadmill' or such and go on virtual rides (maybe with an iPad or a tv or something infront of it?). With the kinds of money Peloton are charging, it did seem like a much better deal, and yo…

You clearly aren’t their target audience if you’re even thinking about price, it’s a luxury brand that people bought into because their cool rich friends did and they wanted to be part of the club, nothing more nothing less there are plenty of normal alternatives for people who just want exercise, bad example of broken capitalism to me

Envy much?

Re: Peloton to charge $95 activation fee for used bikes

#30

Post by ApolloFortyNine »

They are losing money still so desparate moves like this I guess make sense, but adding friction to the new subscriber workflow just seems wild. There's a reason why just about every subscription out there offers free trials/discounted first months. It's to get you in the door.

It's not even as if the bike is disabled when bought used, you can just use it like any other spin bike happily. This ONLY effects people who are trying to sign up for a subscription.

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