- Peloton is introducing a $95 “used equipment activation fee” for bikes purchased from outside its official channels in the US and Canada, aiming to boost revenue and maintain onboarding quality for new subscribers.
- The fee has sparked criticism as it reduces the cost savings typically associated with buying secondhand equipment and diverges from practices in other industries, potentially discouraging used market purchases.
- Peloton’s hardware sales continue to decline, but subscription revenue has seen slight growth; the company still faces financial struggles despite cost-cutting measures and layoffs.
I mean you’re not wrong in a sense. Their marketing campaign centered around targeting a specific demographic (high income insecure millennials)…those that would spend a lot of money to get their own exercise equipment than go to the gym with other people around.
Now there’s nothing wrong with that (with wanting your own exercise equipment, at least). I just wish people realized other gym goers don’t give a shit about you. I literally don’t remember anything about anyone after the gym (like “wow that dude was so fat”).
But alas, here we have our lovely corporate propagan-….I mean “Public Relations”…manufacturing insecurity in the mind of the consumer.
As much as I dislike Planet Fitness’s predatory business model, I do gotta say they used this “gym insecurity” manufacturing from other PR firms to their advantage. “We know you’re insecure about going to the gym. Here’s a gym for the regular joe. Super cheap and the gym won’t have those judgmental gym goes (who never existed in the first place) that other gyms have. It’s only $10 a month! Yeah, we make it so you literally need to give us your left kidney in order to cancel your subscription, and yeah 90% of our revenue comes from people who never actually use the gyms, but hey, if you’re one of the 10%, then that’s even better since the 90% basically pay for your membership, new equipment, clean gym, amenities, AND the gyms won’t be crowded!”
So yeah…predatory as fuck…but at least their PR campaign centered around taking advantage of a manufactured insecurity rather than adding to it? Or maybe by perpetuating this myth that there really do exist a bunch of toxic gym goers at other gyms isn’t really helping…I’m not so sure now haha.
