Skip to main content

Consumers are slow to spend on luxury goods

The wealthy may be spending again, but they aren't opening their wallets as willingly as they once did.

Business is creeping back for hotels, yacht rental companies, jet brokers and jewelry stores - purveyors of the luxury goods that once seemed immune to a downturn, but then took a hit with the recession, according to an article in The New York Times.

Some experts say much of the high-end spending before the recession was fueled by money borrowed by people trying to live beyond their means. Today there is a trend to reducing risk by cutting debt.

At Sabre Yachts in South Casco, Maine, a good year once meant building and selling about 180 luxury sailboats and powerboats priced from $400,000 to $1.5 million. Last year, sales sank to well below 100, Daniel Zilkha, who has owned the company for 15 years, told the newspaper.

"This was by far the worst downturn since the luxury tax nearly wiped out the boatbuilders in the very early 1990s," Zilkha said. "Business is picking up relatively slowly, but it feels as if the recovery has substance."

Click here for the full article.



Dometic Posts Sales Increase for Q4

Net sales of $596 million were up 11% compared with the previous-year quarter, and profit was reported at $2.6 million.


Marine Marketers to Present Neptune Awards

The group will hand out its annual honors during the Miami International Boat Show in February.


MarineMax Releases Q1 2023 Results

Record revenue of $507.9 million was a 7% increase over the previous year, and the growth was driven primarily by acquisitions, including IGY Marinas.


Volvo Penta Reports Q4, FY22 Results

Net sales of $470 million for the quarter were a 33% increase compared to the prior year period.


DEALERS: Are You Improving the Service Experience?

Our monthly Pulse Report survey asks this and other questions about your dealership. Take the survey here.


NMRA Sets Scholarship Deadline

Students pursuing education in the marine trades can apply for the National Marine Representatives Association awards until April 1.


Marine Products Reports Record Q4

The builder of Chaparral and Robalo boats reported net sales were up 42% for the quarter and 28% for fiscal year 2022.


Shurhold Appoints COO

Forrest Ferrari has years of management, business development, IT and quality-assurance experience.