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Breaking down the pink tax, the extra cost of being a woman

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SOUTHFIELD (WXYZ) — More and more women say they are getting priced out of everyday items due to the pink tax.

The pink tax is a gender-based pricing phenomenon that results in higher prices for goods and services marketed towards women when compared to substantially similar ones marketed to men.

“Razors or even shaving cream and stuff, the ones for male products are less priced,” says Lamese Saab, a college student who feels the pinch of the pink tax.

Business school professor Aradhna Krishna points to a revealing 2015 New York City commissioned study investigating 800 products across the board.

“Items all the way from children's clothing to senior health care,” Krishna says are priced higher for women.

A study found women’s items were priced higher 42% of the time and on average costs 7% more than that of men’s.

With clothing, companies have blamed the additional costs on challenges with manufacturing or more skilled labor.

But on personal care items, can you make the same argument?

When comparing women’s shavers, razors, deodorant and lotion — to a men’s version within the same brand, with the same materials, we found on average – a price nearly 13% higher.

“Being college girls, it’s what we need, prices rise while also being a student and that’s expensive by itself, how are we supposed to balance that out?” Saab added.

Some cope, however, by bucking the tradition.

“I usually go for mens products instead of women’s,” Saab revealed.

A call to eliminate the tax is growing louder, with local governments now beginning to intervene.

“When consumers start noticing it and there’s a backlash, then companies will change their policies,” Krishna says.