Peloton Guide: Connected Strength Training for $495

Peloton's Strategy for Sustained Growth

Achieving the level of customer engagement demonstrated by Peloton is a significant aspiration for many businesses. The company’s cycling and treadmill offerings have cultivated a remarkably devoted following around its connected fitness ecosystem. This strong loyalty appeared to be increasing throughout the pandemic, despite challenges like shipping delays and product recalls.

Impact of Gym Reopenings

Despite predictions of the decline of traditional gyms, their reopening has begun to affect Peloton’s financial performance. What strategies can Peloton employ to mitigate this downturn? A straightforward solution involves expanding into new categories within the home fitness market.

Introducing the Peloton Guide

While the ideal timing for the launch of the Peloton Guide may have been earlier, such as in March 2020, its arrival could still be instrumental in maintaining the company’s competitive position in the home fitness sector. Recent reports suggested Peloton was considering entry into the home rowing machine market, alongside brands like Hydro.

However, today’s announcement focuses more directly on competing with companies like Tempo and Tonal. Critically, this launch represents the company’s most affordable hardware offering to date.

Pricing and Components

The Peloton Guide is priced at $495, a substantial $1,000 less than the company’s entry-level Bike. This lower price point is largely due to the Guide being a less complex system. The package includes the Guide itself – a camera system connecting to a TV – a heart-rate band, and a remote control.

Users will need to provide their own strength training equipment, such as weights and accessories. Peloton positions this as a benefit, emphasizing that users won’t require bulky, dedicated devices to begin their strength training experience. Essentially, it’s a “bring your own weights” approach.

Comparison with Competitors

The Guide’s price is higher than the recently released Tempo Move, which costs $395 and includes integrated weights. A key distinction lies in Tempo’s reliance on a user’s smartphone, which limits its potential customer base to those with compatible iPhones.

In contrast, the Peloton Guide utilizes the company’s proprietary camera system. The company details the system’s capabilities as follows:

Features and Availability

The system integrates with Peloton’s existing library of strength courses, which the company notes is its fastest-growing content category. Access to this content requires a monthly subscription fee of $13.

While the Guide won’t be available in time for the holiday season, it is expected to ship in early 2022 in the U.S. and Canada. Customers in the U.K., Australia, and Germany will experience a later release, sometime later in the year.