Walk down the personal care aisle of your favorite store and peruse the different products available for sale. Notice how the packaging of many products for women include the color pink. Also notice how they are priced higher than similar products marketed to men. The Pink Tax makes women, who already get paid less than men, pay more for similar products. Here’s what you need to know about it and how to avoid it.
Identifying the Pink Tax
Pink tax describes the price difference between any product marketed to women and comparable products for men. This includes products like:
Body washesRazorsLotionsHair loss productsOther personal care products that companies dress up in pink or pastel-colored packaging
The Pink Tax includes the high prices charged for menstrual products and resulting tax, known as the Tampon Tax, which is sales tax charged on feminine hygiene products while other products deemed basic necessities are granted sales tax exemption. It also includes items such as pens. In 2012, the Bic company marketed a two-pack of pink and purple “Bic For Her” pens for $5.60 to women and while selling a four-pack of the same pens in black and blue colors for $3.37. All pens had the same black-colored ink and the only difference was the color. The Joint Economic Committee of the United States Senate (JEC) wrote an entire report on the implications of the Pink Tax in 2016. They found that in addition to markups on razors and other personal care products, manufacturers also markup toys, clothing, and senior care items. Overall, 42% of women’s products cost more, while only 18% of men’s products are more expensive. Pricing differences have also been observed in service-based industries such as auto repair.
Why Does the Pink Tax Exist?
There are several possible explanations for these price differences. The JEC boils them down to four categories:
Types of Pink Tax
Pink tax has infiltrated the market in just about every category. In addition to the JEC report, there’s also an in depth study of the Pink Tax produced by the New York City Department of Consumer Affairs, From Cradle to Cane: The Cost of Being a Female Consumer. Sometimes the price difference between men’s and women’s items is obvious with a clearly marked-up price. However, it’s harder to spot in other cases when the price of the products is the same, but the quantity varies. In these instances, men get more of the product for the same exact price.
Tips & Tricks for Avoiding Pink Tax
No matter the circumstances, the Pink Tax is just another way that women are financially disadvantaged compared to men. Women earn less and get promoted less, and are expected to pay more for the same products just because they’re in a different color. However, there are ways to avoid paying these markups—and you should, given the 13% markup on personal care products alone. There are companies that produce unisex products, absorb the cost difference for women’s products, or have a commitment to creating products for women that are fairly priced:
Billie was started specifically to combat the Pink Tax and produce fairly-priced personal care items for women. They even have a referral program called the Pink Tax rebate. Boxed is an online retailer that sells bulk items wholesale. They committed to remove Pink Tax from its pricing model, and instead charge the same price for comparable men’s and women’s products. Brandless produces and sells its own products to reduce markups across the board. In addition to getting rid of the Pink Tax. Their business model also eliminates markups from brand names—which was their primary goal.
You can also choose to compare prices of some “women’s products” and “men’s products” in-store. You can choose to purchase items marketed to men instead of those marketed to women to save money and not end up paying the Pink Tax.
