The Pink Tax

I’m a proud New Yorker and one of the reasons is that we take care of our own. New York state implemented a law prohibiting gender-based price discrimination. Substantially similar products or services cannot be different prices simply because they are marketed towards women or men. An example is a hair salon that charges women 2-3 times the men’s price for a haircut, regardless that there is no difference in the time spent when hair length is similar. That New York salon won’t be happy with the fine they get if they continue to charge a pink tax.

The New York “pink tax” market-basket audit  in October 2024 noted that a visit to the local drug store demonstrated that women pay an average 13% more for everyday personal-care  items (razors, shampoo, deodorant etc.)than men.

In 2017 the Journal of Marketing Research conducted a field experiment on the effect of price knowledge and gender on auto repair quotes.  The results confirmed that women are given quotes 8% higher than men unless they show significant knowledge  of repair costs. On the other hand, a MarketWatch nationwide study in October 2024 indicated that men pay at least 4% more auto insurance premiums than women for full coverage nationally. The gap widens even more for men under the age of twenty five as the insurance algorithm for crash data show a higher severity for younger men. Apparently, this is one of the few times that it pays to be a woman.

So, what is the reason for this pink tax? Is it because women are considered easy marks when it comes to price gouging? Or do women demand cost-plus marketing such as color, fragrance and packaging that men just don’t care about in the products they buy?

Regardless of the reason behind the gender markups in services and products for men and women, there are two simple things that a woman can do to even the playing field. One is to become informed on what something should cost and then most importantly, don’t be afraid to ask plainly, “Is there a man’s price for the same product or service”.