Peloton’s new Chief Executive Barry McCarthyAlthough he has been running the connected gym for just a few months, he is already trying to find new ways to attract customers and increase the company’s profitability.

PelotonCNBC has been informed that Peloton is going to start testing a new pricing structure. On Friday, customers will pay one monthly price for their exercise equipment and access to Peloton’s classes on demand. Peloton said that if a customer decides to cancel the service, they will take back their bike at the expense of an additional delivery fee.

For $60-100 per month, the test can be run in Texas, Florida and Minnesota. Peloton will allow customers to select this option only in its brick-and mortar stores and fitness studios.

Amelise Lane, a spokesperson for Peloton, stated that the pilot was limited in time and created by the company in selected markets of the United States in order to test different pricing models as well as options for potential new members.

Lane wrote in an email statement that this aligned with Pelotons belief about intuition driving testing and data driving decision-making as the company prepares for the next stage of its growth and evolution.

Peloton is seeking to attract investors who are skeptical. Peloton’s new pricing structure has raised concerns from one Wall Street analyst. Over the last 12 months, shares have fallen by 79%. Stock has traded below its IPO value of $29 in recent weeks and ended Wednesday closing at $23.44. In premarket trading, it was unaffected.

Peloton Members who own equipment from the company pay $39 per month for access to workout classes. Members who are digital-only pay $12.99 per monthly

Equipment is the biggest upfront cost. Peloton’s first bike costs $1745, plus delivery and set-up fees. The Bike+ is $2,495. Last August, the company reduced its bike’s price by around 20% to $1.495, which includes delivery. This was in an attempt to offer a more affordable option to consumers.

McCarthy made it clear that prices may fall even further in his efforts to expand Peloton’s userbase beyond the Covid pandemic.

The former NetflixAnd SpotifyPeloton CEO John Foley’s former co-founder has handed the role to an executive who is responsible for bringing Peloton on track. This comes as Peloton struggles with declining demand and increased supply chain costs.

“I believe that there is an enormous opportunity for us as a business to modify the model and significantly increase our revenues. [total addressable market]McCarthy explained that McCarthy is working to make it easier for new members to become members. He also lowered the entry cost and played around with the relationship between monthly recurring and upfront revenue.” McCarthy added in an interview with CNBC’s Jim Cramer last month.

Although the Peloton bundled pricing strategy was only tested and is not permanent, Simeon Siegel, a BMO Capital Markets analyst, raised concerns about what it might do for Peloton’s brand and finances.

Siegel stated, “For a business that had been troubled by logistic problems, they now effectively allow people to return their equipment at any time.” They are actually putting more effort into logistics and delivery. They are not going to walk away.

Siegel stated that Peloton’s average monthly connected fitness churn rate is 20%. This can be attributed to the fact that people won’t leave once they have made a large purchase of a treadmill or bike. Peloton has an average monthly net connected fitness churn was 0.79% in the latest period.

It’s easy to cancel and return. What does that mean for the churn? Siegel said. Peloton becomes a winter experience for people who each year rent the bike and give it back in the spring? It becomes very expensive for the customer.

The Wall Street Journal first reported on the pricing tests.

This is a developing story. Stay tuned for new updates.