Jan 11, 2022

Boating Industry CanadaAgain, we want to thank the Boating Industry Canada News Week readers who took the time to complete the Survey on the Luxury Tax Impact. Full survey results are included at the bottom of this story. On the survey, we said that “perception is reality” and we embarked on this survey to learn if there was consensus of opinion or expression on this topic. 

At the recent Boating Ontario Conference, association CEO Rick Layzell made a brief and impassioned talk about what the associations have all been doing to fight this and how very serious the potential tax is for our industry. Surprisingly, there seemed to be little reaction afterward and a quiet room after the speech.

That’s why we wanted to learn how the industry will explain this new tax (if it comes in) to boat buyers.

The proposed Luxury Tax will be applied on new automobiles and aircraft priced above $100,000 and on boats priced above $250,000. Given how many new vehicles are above the $100,000 threshold, we should assume our customers will be quite aware of the new tax.

As of this writing, 33 people have completed our survey – a small number considering what may be at stake here.

When asked “Are your customers asking you about the new Luxury Tax now?” 42.42 % said “yes – lots of questions” while 30.3% said they were getting a few and yet, 22.27% said they weren’t getting questions.

This may be because some respondents sell only boats under $250,000. We didn’t ask about the value of the new boats that respondents sold, because we were concerned about the perception our customers may have of all boats and the cost of boating. In other words, will the perception of this Luxury Tax hurt everyone?

We asked how you would handle the new tax in sales presentations and multiple answers were given, but we want to point out that only 9.38% of respondents said they planned to show their pricing on an all-inclusive or “drive-away” basis. That surprised us.

Depending on the price of the boat, the amount of tax can become quite significant and we are concerned some buyers will walk away out of principle or anger.

If the bottom line comes out early in the process (or is included as a monthly payment) the customer may be less inclined to react.

The last two years have brought us a major boost in new boaters and boat sales, while supply chain and other issues have resulted in a shortage of product to sell. Final selling prices are probably up significantly from 2019 levels and customers may already be expecting that bad news.

Perhaps balancing that off, many have seen their homes rise dramatically in value. Should boats be any different?

In addition to the survey results, we received several emails and phone calls. As you would expect, these came mainly from dealers who will get hit hardest. Particularly, many BC dealers sell larger boats and yachts and this may be especially damaging to their businesses.

Almost half of the survey respondents anticipate this will have some impact on their business and 36.36% expect a major impact if this tax is implemented. However, there doesn’t appear to be any particular path forward – each dealer will manage this in their own way and even that may be different in each selling situation.

Our hope of crafting a message or a position that mitigates this seems unlikely. But, our marine trade associations continue the battle.

https://boatingindustry.ca/images/PDFs/BIC-Survey-Data_All_220106.pdf

 

 

  • Prev
For a number of years Sail Canada and Provincial Sailing Associations have been advocating ...
West Coast Boatyard Association is hosting 4 days of in-person NMEA training from March 29 to April ...
Increase your industry knowledge and accumulate CEUs! These courses are for members and certified ...
Ontario and Quebec will be the first provinces to receive new Aqua superPower DC rapid chargers, ...
The Toronto International Boat Show team has sent out the following update on the show arrangements.
Due to the spread of the omicron virus variant, further restrictions have been in place in Germany ...
The first issue of Sailing in Canada, a brand-new digital digest produced by Canadian Yachting ...
Again, we want to thank the Boating Industry Canada News Week readers who took the time to complete ...
The American Boat & Yacht Council (ABYC) has announced updates to its annual Standards Week ...
First, thank you to all those Boating Industry Canada News Week readers who have already taken a ...

Boating Industry Canada News Week

 

Every Tuesday we publish a fresh Digest with informative articles pertaining to the Canadian boating and marine industry. Stay up to date with the latest products, research and industry developments.

Missed an Issue of Boating Industry Canada News Week? If you're looking for a specific issue, or simply want to catch up on previous issues, check out our Boating Industry Canada News Week Archives.

Not signed up for News Week? Subscribe here

 

 

 

 

 

Changing Scene

  • Prev
As more and more boat owners are looking to customize their boats to express their individual ...
The largest volume recreational inflatable boat dealer in Canada, Co2 Inflatables Boats and ...
As the first boat to showcase the new Sea Ray design language, the Sundancer 370 Outboard has been ...
Discover Boating has launched the final episode in its five-part digital video series ‘Boating ...
On January 3, 2022, Garmin® Ltd. (NYSE:GRMN), announced that it has acquired Vesper Marine, a ...
Brunswick Corporation (NYSE:BC) announced December 20th, that six of its locations in Europe have ...
Faced with the drastic rise of COVID-19 cases in recent days, the Alliance de l’industrie nautique ...
According to a story in Marine Industry News Boundary Layer Technologies, a California-based marine ...
For the 11th consecutive year, Mercury Marine, a division of Brunswick Corporation (NYSE:BC), has ...
Mustang Survival®, the North American brand known for innovative solutions for the most demanding ...

Garmin acquires Vesper Marine, a leading provider of marine communication equipment and services

Garmin Acquires Vesper MarineOn January 3, 2022, Garmin® Ltd. (NYSE:GRMN), announced that it has acquired Vesper Marine, a privately-held provider of AIS, VHF and vessel monitoring solutions for the marine industry. This acquisition is expected to bolster Garmin’s industry-leading lineup of marine products and technology designed to provide peace of mind and enhanced situational awareness for boaters.

With almost 15 years of experience, Vesper has developed a suite of communication products and solutions for power, sail and workboats, including the award-winning Cortex system. Cortex combines a state-of-the-art VHF radio with Vesper’s unique smartAIS transponder and remote vessel monitoring technology. 

Read More


 

Leather-wrapped steering wheel is the ultimate luxury

Leather-Wrapped Steering WheelFew things on a boat have the power to convey a sense of luxury as much as the steering wheel. The new Torcello Elite from Schmitt & Ongaro Marine does just that. Wrapped in hand-stitched marine-grade synthetic leather, it delivers a hand feel that matches that of a premium automobile.

Designed to be customized in quantity to match virtually any boat interior, the 14" polyurethane Torcello Elite can be manufactured in an endless array of leather and stitching color combinations. 

 

 

Read More


 

People

  • Prev
Outdoor Industry sales and operations professional Russ Ackerman, with 30 years management and ...
Boating Ontario continues to deliver exceptional member value staying at the forefront of ...
The Limestone Boat Company – owner and builder of Aquasport Boats, Limestone® Boats and Boca Bay ...
Mike Burns, president of North South Nautical Group is pleased to announce the expansion of ...
The Royal Canadian Yacht Club announces  the appointment of two new directors to the senior ...
Yamaha Motor Canada is pleased to announce several new members have joined its sales and marketing ...
Brunswick Corporation (NYSE:BC) announced on October 25th, that it has named Keith Yunger as ...
Andrews, Henry (Hank, C.J ) - It is with heavy hearts that we announce the passing of Henry on ...
After 40 years of proudly serving the boating community, Scott Smyth, founder and owner of The ...
Brunswick Corporation (NYSE: BC) announced on September 20th that Kris Neff has been named ...

Alfred Estrada joins Flow-Rite as VP of Sales

Alred EstradaFlow-Rite, a leading manufacturer of injection-molded fluid control components for marine, RV and industrial use, has hired Alfred Estrada as its new VP of sales. Company president Todd Hart made the announcement.

In his new role, Estrada is responsible for developing and implementing key growth strategies and sales action plans. As part of Flow-Rite's leadership team, he meets with the company's sales managers to assess annual sales performance targets and customer base expansion.

 

 

Read More