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How to fight the ‘pink tax’ amid inflation

- By Kimberly Palmer NerdWallet

Trae Bodge, a shopping expert who lives in New York City, sees higher prices for products and services marketed to women everywhere: Socks, razors, shampoo and apparel are a few of the products aimed at women that tend to cost more.

“I don’t know why brands think this is acceptable,” Bodge says. “It’s another punch to the gut as we’re trying to manage our budgets right now,” she adds, referring to rising prices across consumer goods categories due to inflation.

The phenomenon known as the “pink tax,” when products and services aimed at women cost more than their counterpar­ts aimed at men, is well-documented across many goods and services. A 2021 paper co-authored by Stephanie Gonzalez Guittar, assistant professor in the sociology department at Rollins College in Florida, found that women pay more for deodorants and lotions, and that personal care products are increasing­ly differenti­ated by gender. For example, lotion for women costs an average of $2.97 per ounce compared to $1.86 for men.

Here are ways to avoid paying the pink tax.

Opt for gender-neutral products

As Guittar points out, there is no reason why women need to use lavender scents while men stick with pine. Companies also often market multiple products to women — such as separate shampoo, body wash and conditione­r — while marketing a three-inone product to men.

“These are basic hygiene products that don’t need to be gendered,” Guittar says. Shoppers can save by purchasing more generic or gender-neutral products instead of the gendered versions, she says. “Ultimately, (these products) are pigeonholi­ng what femininity looks and smells like, and that comes at a price.”

Study the fine print

Guittar urges consumers to take a close look at the ingredient­s and size informatio­n on the packaging to help make more informed decisions before they buy.

“Look at the price per ounce because women’s products tend to be smaller,” she says, and you can often get a better deal by buying unscented products in larger quantities instead. At grocery and drugstores, you can find the unit pricing on the shelf tag in front of the product.

Comparison shop in advance

Ian Ayres, a professor at Yale Law School, first identified that car dealers often offered the best deals to customers who were white men with research in the 1990s. Follow-up studies since then have affirmed the persistenc­e of discrimina­tory pricing along with some progress, especially at online and no-haggle dealership­s, Ayres adds.

Consumers can help protect themselves by researchin­g car costs to be more informed negotiator­s and by checking out financing options in advance.

“You can get a competitiv­e interest rate by shopping around and you don’t need to go through the dealership­s,” Ayres says.

Ask for equal pricing

When it comes to services such as dry cleaning or haircuts, men’s prices tend to be lower, but Bodge says they don’t have to be.

“If I’m having a cotton oxford shirt cleaned, I just ask for the men’s option, especially if the pricing is posted,” she says. “With haircuts it’s trickier, but if you have a short pixie cut, ask for the men’s price.”

Know your rights

California and New York have passed laws against gender-based pricing, which provides a legal recourse for consumers who notice price discrimina­tion based on gender. You can report violations to the New York State Division of Consumer Protection or the California Department of Consumer Affairs. Other states have proposed similar legislatio­n.

“We have to look at how we push back with legislatio­n. When we think about economic justice, we often only think of equal pay, but that’s not the only area where women are experienci­ng economic injustice,” says Christian Nunes, president of the National Organizati­on for Women, an advocacy group dedicated to women’s rights.

“They charge you more, but also underpay you,” says Nunes. “It’s harder to have a sustainabl­e life.”

Prioritize saving

Given the wage gap and women’s longer expected life spans, it’s essential for women to amass savings to get through the postretire­ment years, says Cindy Hounsell, president of the Women’s Institute for a Secure Retirement, a nonprofit that advocates for women’s retirement security. “People always say, ‘I wish I had saved more,’ ” she says.

That means leveraging all available work benefits, such as 401(k)s, as well as cutting back on extraneous spending.

“It makes a big difference how you spend your money,” Hounsell adds.

She urges people to use online calculator­s to figure out how much you will need in retirement so you have a clear goal. “Everyone needs a different amount.”

Meanwhile, given the high rates of inflation across many consumer categories, the additional cost of the pink tax only makes it even harder for women to save.

Says Bodge: “It’s another hurdle that we need to leap over.”

 ?? MARK LENNIHAN/AP 2021 ?? Women often pay more for goods and services, but it doesn’t have to be that way. Shopping experts say that by opting for gender-neutral personal care products, consumers can sometimes avoid the“pink tax.”
MARK LENNIHAN/AP 2021 Women often pay more for goods and services, but it doesn’t have to be that way. Shopping experts say that by opting for gender-neutral personal care products, consumers can sometimes avoid the“pink tax.”

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