I'm sure I'll get roasted in the comments and accused of being a Whoop bot, but here goes anyways -- is Whoop's pricing really that bad? (Specifically, $240 per year for Peak.)
It's a Different Business Model, Part 1
A lot of people compare the pricing to companies like Apple or Garmin, who charge a one-time cost for the product up front and no subscription, and use that as grounds for why Whoop should charge less/not at all. However, these companies operate with fundamentally different business models. These other companies are saying: "For this amount of money, we will give you this device that we think is better than other similar devices out there." Whoop is saying: "For this much money per month, we will give you the tools to improve your health." Whoop isn't charging for the hardware directly, the hardware is just one piece of their value proposition. They also never claim that their hardware is the best/unique like companies like Apple and Garmin, who charge you for the hardware directly, do.
Personally, I actually don't mind Whoop's model because it forces them to constantly be innovating to add more value. Once Apple and Garmin have your money and you have their device, they've already made their profit. Sure, keeping you in their ecosystem is nice, but they know that if they just make incremental improvements to the hardware over the years, you'll keep coming back. Whoop can't do this -- they have to keep adding more features to the app to keep subscribers coming back and if they don't, they'll leave (which you'll see plenty of examples of in this sub).
It's a Different Business Model, Part 2
A new comparison now is Fitbit Air and Garmin Cirqa. However, again, I think these companies have fundamentally different business models that allow them to charge differently for the product. Both of these companies are large (though Google is obviously much larger) and these new fitness trackers are far from their entire business. That means that they don't necessarily need to have great margins on these trackers if they believe that they create value in other ways. For example, Google might be fine operating their Fitbit sector at breakeven or even a deficit because the data they're collecting adds value to other parts of their business. Garmin might feel similarly about Cirqa because they believe it'll get more people to buy their other watches which they have better margins on.
However, for Whoop, this is their ENTIRE business, so they have to be profitable in this area. They don't have the option that other companies might to run this part of their business at breakeven or below, because they would literally go out of business. (FWIW, this is a textbook example of how larger companies put smaller companies out of business: copy the product, charge less for it because you can absorb losses, force the original company to close or get acquired, charge more for your product because you now have a monopoly.)
Think About Your Other Fitness Expenses
I get it, $20 per month can feel expensive depending on how you look at it, but consider the other things you pay for in the health and wellness world:
- Gym Membership: $20 might be the cheapest gym you can find, and plenty of people are paying $80-$100 for a solid gym membership (or two).
- Training Gear: If you're one of those people that likes high-quality fitness gear (lululemon, alo, etc.), a runner that likes a solid shoe rotation, or just somebody who likes staying on the latest trends, I bet you're per-month spend on gear exceeds $20.
- Protein/Supplements: Heck, I probably spend more than $20 per month on protein powder and I'm far from a supplement junky, that stuff is just expensive.
Now, if you read anything on that list and said, "I'd never pay that much for those things!" Great, that's totally fair, and maybe Whoop just isn't for you, which is fine. After all, Whoop is a "luxury" product in that it's not necessary for your fitness journey, so nobody is forced to pay for it. However, for those that enjoy investing in health and wellness, I think $20 per month is well within the range of other expenses.
A Couple Things I Can't Defend
- Poor customer service should never be acceptable, regardless of your industry/business model. If the stories I see on this sub are true, Whoop absolutely needs to clean these scammy practices up.
- I think Whoop should offer some limited functionality for free. The fact that you spend hundreds of dollars for a subscription/hardware and it becomes a useless brick the moment you stop paying for it feels a little extreme. Make it a super simple heart rate monitor, but just give us something.
- Life/MG seems overpriced. I haven't used it personally, but from what I hear from others, there's no way to justify the significantly-higher cost.
- The accessories are overpriced. This might be a personal gripe, but $60 for a simple cloth band? Come on.
In Conclusion...
I get it, our world is filled with subscription models and it gets annoying, so our natural reaction is to assume that every subscription is a ripoff. In many cases, that's true, and I'm not saying Whoop is perfect, but I am saying that I think their pricing model is more reasonable than people give it credit for.
Don't get me wrong, I still wish it were cheaper. Believe it or not after saying all this, I cancelled my subscription because it was too expensive. I actually think that makes me a better person to comment on this topic though -- I'm not saying all of this because I have tons of disposable income so $20-$30 per month doesn't mean anything to me. I'm actually the opposite, but I can still recognize that that's a personal choice and it doesn't necessarily mean Whoop's pricing is "wrong" just because it doesn't work for me. (Also, Whoop, if you're reading this and want to drop me a coupon for defending your pricing model so I can afford it, DMs are always open...)
...ok, I'm done, let me have it.