THE “PINK TAX”: HOW SELLING THE SAME PRODUCTS IN PINK CAN COST WOMEN MORE
Sometimes, the only obvious difference between two products is the colour of the packaging. Yet the price tag can tell a very different story.
1. A PINK RAZOR. A HIGHER PRICE.
Imagine walking into a supermarket and finding two disposable razors from the same brand.
One has blue packaging and is marketed to men. The other is pink and marketed to women. Both perform the same basic job, yet the pink version costs more.
This phenomenon is commonly known as the pink tax. It is not an official tax added by a government. Instead, the term describes price differences between products marketed towards women and comparable products marketed towards men.
Razors, deodorants, shampoos and other personal-care products have all featured in debates about these price gaps.
The uncomfortable question is simple: are customers paying for a genuinely different product, or partly for how that product is marketed?
2. THE STUDY THAT EXPOSED THE PRICE DIFFERENCES
In 2015, New York City's Department of Consumer Affairs examined 794 products across five industries, including toys, clothing, personal-care products and items for older adults.
The report found that products marketed towards women or girls cost more than comparable products marketed towards men or boys in 42% of the comparisons. Products marketed towards men or boys cost more in 18% of comparisons, while prices were equal in the remaining 40%.
Across the products studied, the report estimated that women paid an average of 7% more.
The differences could be striking in particular categories. The report found that girls' toys cost more than boys' equivalents in 55% of the comparisons.
These findings helped turn the pink tax from a shopping complaint into a broader discussion about pricing, marketing and consumer fairness.
3. THE PRODUCT DOESN'T ALWAYS NEED TO CHANGE MUCH
Gendered marketing can create two versions of a product with different packaging, colours, fragrances or design features.
A company might sell a blue deodorant with a strong, sporty scent and a pink deodorant with a floral fragrance. It might package razors differently or give a women's version a more elaborate appearance.
Some differences can justify different production costs or appeal to different preferences. But others may have little practical impact on how the product performs.
This creates an opportunity for businesses to divide a market into smaller customer groups and price their products accordingly.
In marketing, this is a form of market segmentation: offering differentiated products to customers with different preferences and willingness to pay.
The strategy is not exclusive to products marketed towards women. Brands also charge premiums for products aimed at men, luxury customers and other consumer groups.
The controversy arises when gendered versions are very similar but their prices differ in ways that customers may struggle to justify.
4. BIC AND THE FAMOUS “FOR HER” PEN
One of the most memorable examples of gendered marketing was BIC's BIC Cristal for Her pen, introduced in 2012.
The product featured pastel colours and was explicitly marketed towards women. The basic function, however, remained familiar: it was a pen designed for writing.
The product attracted widespread ridicule online, with critics questioning why women needed a specially designed pen in the first place.
The episode demonstrated a risk for brands that confuse customer segmentation with unnecessary product differentiation.
Creating a separate version of an existing product can generate attention, but attention does not automatically translate into demand. If customers see the distinction as artificial, the marketing itself can become the joke.
The pen became a memorable example of how a product can attract publicity for reasons its creators may not have intended.
5. THE BUSINESS LOGIC BEHIND THE PINK TAX
Why would a company charge different prices for products that appear similar?
One explanation is that businesses study what different customers are willing to pay. If research suggests that a particular group prefers a specific design, fragrance or feature, the company may create a dedicated version and price it differently.
Another factor is competition. Products may occupy different retail categories, face different competitors or receive different promotional discounts.
Manufacturing costs can also differ because of ingredients, components, packaging and production volumes.
This is why not every price difference proves deliberate discrimination. To understand whether a pink product is genuinely more expensive, researchers need to compare similar products while accounting for relevant differences.
The commercial incentive, however, is clear: if customers consistently choose the version designed for them, a company has a reason to develop and market that version.
6. THE NUMBERS ARE MORE COMPLICATED THAN THEY LOOK
A 2018 report by the US Government Accountability Office examined gender-related price differences in ten categories of personal-care products.
After accounting for factors such as product size, the researchers found that women's versions were significantly more expensive in five categories. Men's versions were more expensive in two, while the remaining categories showed mixed or insignificant differences.
The report also cautioned that the available evidence could not establish how much of the observed price gap resulted from gender bias rather than differences in product features, demand, advertising or other costs.
A 2023 academic study using extensive US retail data reached a similarly nuanced conclusion. Although women's products were more expensive on average in several categories, comparisons between products with similar ingredients showed small differences, with women's versions cheaper in three of the five categories examined in that particular analysis.
The lesson is important: a price gap is evidence of a difference, but it does not automatically prove why that difference exists.
The pink tax debate is strongest when it compares genuinely comparable products rather than assuming every pink item should cost the same as every blue one.
7. WHEN CUSTOMERS START COMPARING
The internet has made it easier for consumers to question pricing strategies.
A shopper can photograph two products, compare their ingredients and quantities, calculate the cost per unit and share the results with thousands of people.
A difference that might once have gone unnoticed can become a viral consumer complaint.
For brands, this creates a reputational risk. A small price premium may appear commercially attractive, but if customers believe the difference is unjustified, the company may face criticism that outweighs the extra revenue.
The same scrutiny can work in a brand's favour. Transparent pricing, clear product benefits and comparable prices across similar versions can strengthen customer confidence.
8. WHY THE PINK TAX MATTERS BEYOND RAZORS
The debate extends beyond toiletries.
Researchers and consumer organisations have examined gender-related pricing in children's products, clothing, dry-cleaning services and other markets. The results vary by category, location and the characteristics being compared.
There is also a separate issue involving sales taxes on menstrual products. In some jurisdictions, these products have historically been subject to taxes that exempted certain other necessities.
Although both issues are sometimes discussed under the broader pink-tax debate, they are different problems: one concerns market pricing, while the other concerns government taxation.
Understanding the distinction matters because the solutions differ. Price transparency and competition may address some retail concerns, while changes in tax law are needed to change government-imposed taxes.
9. WHAT BUSINESSES CAN LEARN
The pink tax illustrates both the power and the danger of customer segmentation.
A company can build a successful product by understanding a specific audience and offering features that customers genuinely value. But creating a separate product solely to justify a higher price can backfire when customers see through the strategy.
For entrepreneurs, three principles stand out:
Differentiate with purpose. A new version should offer a clear benefit, not merely a different colour.
Understand the real costs. Pricing decisions should reflect product features, production costs, competition and customer demand.
Protect trust. If a higher price cannot be explained convincingly, customers may question the entire brand.
A clever pricing strategy can improve profitability. A strategy that makes customers feel manipulated can damage it.
MAACAT PERSPECTIVE
The pink tax debate reveals how much pricing depends on more than the physical product. Packaging, positioning, customer expectations and perceived value can all influence what people are willing to pay.
But a higher price does not always prove unfair treatment, and a different colour does not automatically justify a premium.
The real business challenge is knowing the difference between creating value and simply charging more for the perception of it.
