Peloton

The Peloton bike costs two thousand dollars. That's expensive for exercise equipment. But Peloton never made money primarily on the hardware. They made money on the person who bought it and then paid forty four dollars monthly for the subscription. The bike was the entry point. The subscription was the business. This model created recurring revenue that multiplied across millions of homes. Equipment companies sold products and hoped customers used them. Peloton sold aspirations. Buy the bike and become someone who works out with live instructors and competes with friends on a leaderboard. Thousands of classes, instructor personalities, and community created ongoing value justifying monthly subscription payments.