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I think there is an number of unfair criticism against the company. I am not here to argue about the valuation, I have not examined anything about the financial
by infecto 8y ago
I think there is an number of unfair criticism against the company. I am not here to argue about the valuation, I have not examined anything about the financials of this specific company BUT I do think these companies are hitting a sweet spot in this market. This company is not selling you an exercise bike, they are selling you the community surrounded from the classes. There was an interesting talk by the founder of Peloton regarding religion and community. His argument was that many areas of the country have largely transitioned away from being religious and the one downside is people lack community that religion used to provide. People are replacing this with fitness communities. Look out how people treat SoulCycle or CrossFit as if it was a religion. They don't go there just or the workout but also the community of people.
Companies like Peloton are trying to extend this relationship into the house. SoulCycle classes are expensive, $2k for a spin bike is not terrible, I would be surprised if the margins are not huge on this. So if I were to signup for Peloton I would not blink at the cost of the bike. $40/month for a subscription is also cheap when I compare it to things like SoulCycle. Sure its different but I am also able to workout at home.
I can see the value in these companies. Is $4b too high? Perhaps but I have not examined the marketplace. I think last numbers were 600k subscribers and they have no something like 29 physical retail locations.
- scarface74 8y agoAs I said previously, I have exercise equipment and I am looking at two more pieces.... https://www.nordictrack.com/exercise-bikes/nordictrack-grand-tour-pro-exercise-bikes https://www.nordictrack.com/exercise-bikes/nordictrack-grand... https://www.nordictrack.com/grand-tour-bikes https://www.nordictrack.com/grand-tour-bikes But even I can’t justify $2000 for a Peleton bike. On the other hand, when people ask me what exercise equipment they should buy, my answer is usually “none”. I saw too many people who bought equipment and never used it. https://www.nytimes.com/2009/01/06/health/nutrition/06well.html https://www.nytimes.com/2009/01/06/health/nutrition/06well.h...
- infecto 8y agoMeh. Yeah of course, most people don't need to buy exercise equipment but I feel that these newer products are filling a religious niche that were not filled prior with normal exercise equipment. I could not specifically compare the two but I think you are buying into the workouts not just the bike. But just on initial view the peloton looks better. Magnetic vs flywheel. The workouts on peloton are night and day difference with a much higher level of quality as their are live streaming daily. Is it an expensive bike? Yes Is it for everyone? No Do people need to buy exercise equipment? No. Disclosure, I don't own a Peloton but own bike trainers. A good bike trainer is going to cost $400-$1k and that does not count my road bike. When I see peloton I don't blink at $2k if it was something I was going to be using on a regular basis.
- scarface74 8y agoMagnetic bikes are supposedly quieter. Which is a big deal since my home gym is a converted bedroom close to my son’s room.