According to a press release from the company, Peloton Interactive (PTON -4.18%) is introducing new hardware products at different price points. Previously, the at-home fitness company sold a stationary bike simply called the Peloton Bike and a treadmill called Peloton Tread. The company is lowering the price of Peloton Bike and simultaneously launching a new premium product called Peloton Bike+. The Peloton Tread is now renamed the Peloton Tread+ and the company is launching a cheaper model called Peloton Tread.

The Peloton Bike used to cost $1,995. Now the base model is priced 5% cheaper at $1,895. By contrast, the premium model costs $2,495 -- a whopping 25% increase. The Peloton Tread used to cost $3,995. Now the base model will be 38% cheaper at $2,495. But the premium model (which is actually just the original Tread) will cost $4,295 -- an 8% increase.

A picture of a live class at Peloton's studio.

Image source: Peloton.

Continued development of Peloton's business

For Peloton, the tiered-pricing model fulfills a promise made by management earlier this year. It was mentioned in conference calls to discuss quarterly earnings, and more recently CFO Jill Woodworth talked about the opportunity during an event called Investing in Tech by Barron's. Specifically regarding a less expensive treadmill, Woodworth said, "If you think about our priorities, that is first and foremost on our minds."

In addition to the introduction of tiered pricing, Peloton will also directly offer financing options for its hardware products. Financing options start at $49 per month, excluding the ongoing subscription fee of $39 per month. Previously, Peloton's customers largely relied on third-party credit to finance hardware purchases.

Peloton is scheduled to report fiscal fourth-quarter earnings on Sept. 10. Investors expect robust growth numbers from this growth stock.