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Peloton CEO John Foley: Sales increased after we raised prices [Video] | Yahoo Finance

Peloton CEO John Foley tells Yahoo Finance the profitable fitness startup saw sales of its in-home exercise bike actually increase after it raised the price to $2,245.

“It was interesting psychology that we teased out,” Foley recalls. “In the very, very early days, we charged $1,200 for the Peloton bike for the first couple of months. And what turned out happening is we heard from customers that the bike must be poorly built if you’re charging $1,200 for it. We charged $2,000 dollars for it, and sales increased, because people said, ‘Oh, it must be a quality bike.’”

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Peloton CEO John Foley: Sales increased after we raised prices [Video].