5 ms·
Why do they need financing? How is a company that sells $2000 exercise bikes not profitable?
by tdees40 8y ago
Why do they need financing? How is a company that sells $2000 exercise bikes not profitable?
- balls187 8y agoNever turn down money if the cost is right. // I could purchase my car out right with cash, but since the interest rate was super low, there was no harm in financing it. Similarly, if you can use someone else's money to grow your business, and the terms are quite favorable to you, why wouldn't you? More likely in Peleton's case, they make profit, but it takes a lot of money to expand. Or possibly R&D costs.
- LarryDarrell 8y agoI also wonder how big the market is for $2000 exercise bikes/treadmills + subscription service... especially when consumer debt is already at a high. Maybe they are thinking gyms/apartment fitness centers will buy them?
- scarface74 8y agoIt’s aspirational. People think if they have the “convenience” of working out at home, they will be more disciplined. Few actually do. But on the other hand, having scheduled classes and the social aspect may serve as a commitmemt device.