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125,000 units at US$4300 per, is going to sting if they have to buy back all of them. It appears that there's an option for consumers for the company to relocate the machine to another room (does this take a service technician to do that??) and/or reprogram the machine in some way to require people to enter a PIN code before it will start (which is a half-measure).

Company's initial response to the CPSC was ... not good. When the authorities come knocking, telling them to get lost isn't going to work.
 
Brian P said:
125,000 units at US$4300 per, is going to sting if they have to buy back all of them. It appears that there's an option for consumers for the company to relocate the machine to another room (does this take a service technician to do that??) and/or reprogram the machine in some way to require people to enter a PIN code before it will start (which is a half-measure).

Company's initial response to the CPSC was ... not good. When the authorities come knocking, telling them to get lost isn't going to work.
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It's interesting that they allowed until Fall 2022 for a full refund. Maybe hoping the furor dies down and people forget to call for a pickup? Seems like many people will just enjoy their free treadmill for another 18 months and then send it back.

As for getting help, it weighs 455 lbs. Most people will not be moving that themselves.

EDIT:

They also have little tidbits like this on their spec sheet.

"Avoid GFCI outlets"

Why is it leaking current to ground? Who designed this thing?
 
GreyGhost said:
As it should be. Pile of investment douches. Product safety commission says stop using it, children are dying and CEO immediately says "nah, it was just one kid, pay attention while you are using it"
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I could be missing something, but it's a treadmill, every treadmill I have seen has the same potential risk.

Note, I hold some PTON. Still up 20% after today's dump, still holding, will see how it works out
 
regder said:
I could be missing something, but it's a treadmill, every treadmill I have seen has the same potential risk.

Note, I hold some PTON. Still up 20% after today's dump, still holding, will see how it works out
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That specific treadmill has a lot of space under it. Not sure if that was due to their shock absorption, some other engineering reason or style. On my parents old treadmill, the rear roller is behind a guard and you can barely get a hand underneath. Obviously on the peleton, the rear roller is exposed and there is enough room underneath to suck in a six year old. Now you have a kid wedged under a 455 lb object and the belt will not power backwards to help you get them out. Pretty much the definition of unsafe design.
 
GreyGhost said:
That specific treadmill has a lot of space under it. Not sure if that was due to their shock absorption, some other engineering reason or style. On my parents old treadmill, the rear roller is behind a guard and you can barely get a hand underneath. Obviously on the peleton, the rear roller is exposed and there is enough room underneath to suck in a six year old. Now you have a kid wedged under a 455 lb object and the belt will not power backwards to help you get them out. Pretty much the definition of unsafe design.
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Fair enough, quickly googled a bunch of treadmills. Some seem to have some sort of drag-under guard or minimal clearance, but many do not.
 
regder said:
Fair enough, quickly googled a bunch of treadmills. Some seem to have some sort of drag-under guard or minimal clearance, but many do not.
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Conveyor belts, escalators, V belts etc, This isn't new technology. How'd they miss guards?
 
nobbie48 said:
Conveyor belts, escalators, V belts etc, This isn't new technology. How'd they miss guards?
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Tech company. As with most other tech companies, they have a very good core idea on how to revolutionize an industry and then proceed to tell the entire world to f off while they reinvent the wheel (poorly).
 
Brian P said:
125,000 units at US$4300 per, is going to sting if they have to buy back all of them. It appears that there's an option for consumers for the company to relocate the machine to another room (does this take a service technician to do that??) and/or reprogram the machine in some way to require people to enter a PIN code before it will start (which is a half-measure).

Company's initial response to the CPSC was ... not good. When the authorities come knocking, telling them to get lost isn't going to work.
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Total Assets 3 Billion

Recall: $4300 X 125,000 = $537,500,000

I would have a problem writing a cheque for 1/6 of my assets. Did they sell these through dealers and the payback is less?
 
nobbie48 said:
Total Assets 3 Billion

Recall: $4300 X 125,000 = $537,500,000

I would have a problem writing a cheque for 1/6 of my assets. Did they sell these through dealers and the payback is less?
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Afaik, all direct marketing. I suspect the long horizon on the recall was both to help spread the pain over a longer period and to hope that some people would forget and miss the deadline. Win win for Peloton unless more dead kids end up on the news. Since the whole point of peleton is the live and interactive classes, it would be trivially easy to brick them all tomorrow if they were more concerned about safety than money.

My guess is they are hoping to develop a revision or another product within the recall window and do treadmill swaps instead of treadmill returns.
 
GreyGhost said:
Afaik, all direct marketing. I suspect the long horizon on the recall was both to help spread the pain over a longer period and to hope that some people would forget and miss the deadline. Win win for Peloton unless more dead kids end up on the news. Since the whole point of peleton is the live and interactive classes, it would be trivially easy to brick them all tomorrow.

My guess is they are hoping to develop a revision or another product within the recall window and do treadmill swaps instead of treadmill returns.
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No percentages numbers from me but I always felt a lot of exercise equipment was purchased as a New Year's resolution and sold or dust collectors in a month or three. Now a chance to get all the money back or were these commercial gym units?
 
nobbie48 said:
No percentages numbers from me but I always felt a lot of exercise equipment was purchased as a New Year's resolution and sold or dust collectors in a month or three. Now a chance to get all the money back or were these commercial gym units?
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They are home units where you pay upfront and then pay every month to participate in classes on the built-in screen ($50/mo :eek: ). Basically marketed as a status symbol.
 
Not sure if they were the very first with the entire concept (not an exercise bike but the subscription based virtual trainer/spin class) but they are the big one. Pre-COVID they started to hit what a normal market could absorb product wise. Come COVID and all the spin class crowd and more needed something at home and they also pivoted to add other items like the treadmill in question (right place at the right time by luck...).

Once things get back to normalish and gyms and spin classes are opened I think they will be in a bit of hurt. The concept will not likely ever go away but there will be other options for the spinners and a bunch of expensive racks to hang your clothes on. Cancelled subscriptions....

As for the bike, it is really geared towards the spin class crowd, I have tried them and I really cannot see it as something for a real cyclist. There are parallel products like Zwift etc. for that. Or just a dumb turbo trainer, or go outside.
 
I don't own a Peloton or even used one, but everyone I know that has one swears up and down by them. Their customer satisfaction and retention is off the charts.

Yes it's a status symbol (just look at how many high end real estate listings have a prop Peloton), yes they're expensive, yes you have to pay a monthly subscription for the classes. The people that have them love them and are happy to pay the price. They are the Apple of home fitness.
 
AC is one company, if you're willing to let your $ sit for 5 years, that I think will net you a decent profit.

As I like to say, you can't always pick the top of a stock, but in rare instances you can sometimes pick the bottom. AC is in that spot right now.
 
LBV said:
AC is one company, if you're willing to let your $ sit for 5 years, that I think will net you a decent profit.

As I like to say, you can't always pick the top of a stock, but in rare instances you can sometimes pick the bottom. AC is in that spot right now.
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AC bottomed out a little over a year ago. I’m +87% on it as it sits and I’ll hold this one for a while until it comes back to close to pre-pandemic prices at least.
 
Everything bottomed out over a year ago but I still think it's a bit of a bargain.
 
Katatonic said:
AC bottomed out a little over a year ago. I’m +87% on it as it sits and I’ll hold this one for a while until it comes back to close to pre-pandemic prices at least.
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I got in around $17/share. Missed the boat when it tanked to $10 for a bit there.
 
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