Word is spreading about Peloton’s new stance on selling their hugely-popular bike into multi-family properties. Many are questioning the reversal, and some think they’ve got it all figured out. Heartline was notified by Peloton that it could no longer sell the Peloton bike to apartment complexes or condominium communities and started advising our clients of such back in the Spring. Most also expressed surprise and confusion.
National Apartment Association News more recently wrote about it for their members with some more details and reaction to the news.
A few months before it made its initial public offering (IPO) in September, Peloton announced to commercial clients that it will focus its sales on individual consumer accounts.
The bikes took hold of fitness fanatics about two years ago and Peloton rode that popularity to great profit. The key selling point was that the [group cycle] bikes included software program with exciting visuals and touch screens that enabled streamed live group workouts with live instructors One market analyst called the company “the Netflix of fitness.”
Clay Hicks, President of TDC Management, recently inquired about Peloton’s commercial sales and received this response from his Peloton sales representative:
“Our commercial team, showroom employees and Web store no longer sell Peloton products to multi-family housing developments. This decision returns focus to our original model of bringing high-quality instructor-led fitness into our Members’ personal homes; We have learned that the best Peloton experience begins with a Member purchasing and exercising on his or her own personal Bike.”
That response is not unlike what other apartment communities have been receiving.
Princeton Properties’ Chief Marketing Officer and Executive Vice President Sarah Greenough raises an eyebrow.
“This was a big letdown to us. Spinning has gained significant popularity in the fitness world. It made sense to add this amenity to our fitness centers.”She thinks Peloton’s decision might be “a thinly veiled play to make more money on sales period. Peloton probably figured an apartment community of 200 apartments, for example, has 200 potential [Peloton] customers, not just two commercial bikes sold to us for our clubhouse. I think our industry started cramping their sales!”
[And those communities that purchased their commercial Peloton bikes before the ban may wonder about service.] “They ‘say’ that they still service [our] bikes, but I have found otherwise,” Chad Christian, Regional Manager, Avenue5, says. “I constantly am told, ‘We no longer service multifamily’ from them when we have issues. I don’t want to say that Peloton bikes have a lot of issues, but we have had to call for service at least once a month about one or more features on the bikes.”
“From what I’ve read,” Greenough says, “Peloton has stated that it will continue to send current content, software updates, warranty, support and service outlined in our original commercial subscriptions.”
[The article goes on to mention some alternative products and the nature of technology and product changes.] “Products come and go,” Greenough continues. “New technology is ever-evolving. There are so many options for on-demand and streaming fitness. We liked the prominence and prestige that the Peloton brand brought, but we will find an alternative way to give high-quality, on-demand fitness to our residents through streaming applications and other available fitness brands,” she adds.
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SOLUTIONS SOLUTIONS SOLUTIONS SOLUTIONS
While Peloton has its own reasons for the move, Heartline is always searching out the best and most cost-effective equipment specifically for the multi-family marketplace. We know how to help you there are alternatives, great alternatives to the Peloton bike that will suit your property’s fitness center to a T. The brand names aren’t as well-known, but they have all the same bells and whistles, plus a few more. AND they are commercial grade so they can withstand the wear and tear of multiple users.
Call or email us at (800) 262-3348 (option 2); firstname.lastname@example.org and we’ll get you specs and pricing on the best alternative for you. In no time, you’ll forget all about Peloton! And so will your residents.