Gender-based pricing also called the "pink tax," is when products made for women and marketed to them cost more. According to "Cradle to Cane: The Cost of Being a Female Consumer," an international study by the New York Department of Consumer Affairs, products for women cost 7% more than average. Also, the difference is 13% for personal care items that include skincare products for women. On the other hand, the cost of the generic version or the male equivalent of these products is small. But this is not something that only happens in the West. In India, many products cost more to women.
What is the Pink Tax and how does it work?
It is the extra money added to the price of products or services marketed to women, for example, products and services that include razors, soaps, lotions, deodorants, haircuts, and more. When a company makes or sells a product for women, it may charge a little more. Most of the time, there isn't much difference between these products and similar ones for men. It could just be the color or the way the package looks. The women's tax makes it more expensive for women to buy the things they need to live.
History of the Pink Tax
The history of this tax goes back to around at least the 1990s when a report from California's Assembly Office of Research found that 64% of stores in several major cities charged more to wash and dry clean a woman's blouse than a man's button-up shirt. The issue got a lot of attention across the country, and since then, there have been many attempts to get rid of the pink tax through regulations.
Most states do not have laws against this tax that were only banned in the state of New York. It was banned when former Gov. Andrew Cuomo signed a bill to do so in April 2020. The law went into effect on September 30, 2020. Some service providers will have to give price lists for standard services, and they will be told that it is against the law to charge different prices for men and women. The government can fine businesses if they break the law.
Reasons leading to Pink Tax
1. Price Sensitivity
Some companies may find that women don't care as much about the price of their products as men do. This means they are more likely to buy a product even if the price goes up or down. If this is true, companies will probably charge more for products for women just because they can. It may no longer be true that women don't care much about prices. A recent study found that two-thirds of women are likely to use their phones to compare prices in stores, but only half of the men are likely to do the same. There are no pros and cons to the pink tax because it directly promotes the idea of gender-based discrimination against women.
2. Differences in Production
There's a good chance that some products marketed to women are more expensive because even small changes, like changing the color, require more materials, which increases the price. Or, if a product is made on a smaller scale but still needs different materials, the cost of those extra materials might have to be split among a smaller number of customers, which would cause the price to go up.
3. Tariffs
Brands and manufacturers are not the only ones who have to pay the pink tax. Tariffs on goods from other countries that come into the country are often higher on women's products. Most of the clothing the US imports is based on gender, and the average rate for women's clothing is 15.1%, while the average for men's clothing is 11.9%.
Ways to avoid Women's Pink Tax
When you want to buy pink disposable razors instead of the cheaper blue ones or pay twice as much for a haircut as a man would, remember this: Every dollar you spend on the tax is a dollar you don't have to pursue your passions or retire in style. The truth is that you can take the money away from the advertisers. You can also save money if you buy hair care products, razors, laxatives, and vitamins made for men.
Don't analyze the pros and cons of the tax. Just avoid it. Shampoos, conditioners, and lotions for women cost more because they come in pretty containers and smell good. If you want to avoid paying the tax, smell the men's versions to find a different scent you like. Looking at the back of the bottles, you will probably see that they were all made with the same things (other than fragrance).
Conclusion
The pay gap between men and women is getting bigger and bigger all over the world. Even something as basic as menstrual products is still too expensive for many people. Know that when you buy something for women, you might just pay for its packaging. The concept of the pink tax is not right. If you want to buy something smart, compare prices whenever you can. Remember that it can be hard to tell how much you buy from the package. Even if the price of two items is the same, one may have less of the item, making it more expensive. Thanks for reading it this far.
