Is This Bias in Pricing? Shrewdness? Or Just Being Clueless?

We were struck by this December 22 Washington Post column headlined "Why you should always buy the men's version of almost anything." 

According to reporter Danielle Paquette, the New York City Department of Consumer Affairs found that "Controlling for quality, items marketed to girls and women cost an average 7 percent more than similar products aimed at boys and men." 

Sounds preposterous, right? But, consider these specific examples from stores such as Target, Walgreens, Club Monaco, Levi's:

• A red scooter for boys costs $29.95; the same scooter in pink "for girls" costs $49.95. 
• Other gendered toys: Raskullz shark helmet $14.99;  Raskullz unicorn helmet $27.99.
• Playmobil pirate ship $24.99; Playmobil fairy queen ship $37.99.
• Personal care products: Schick Hydro 5 razor cartridges in a blue box, $14.99; Schick Hydro "Silk", in purple packaging, $18.49.
• Apparel: Women's clothing costs from 24% to 28% more than men's at some specialty stores that sell both. 

Other specific examples abound in reports from the State of California, the University of Central Florida, and the Yale School of Management. 

So, What's Going On Here?

• Is this a shrewdly intentional pricing strategy, reflecting what customers will pay? You know, "Price is not a function of cost."
• Is it an historical artifact? "Well, we've always charged women for any alterations; men get tailoring for free. That's just the way it is."
• Is it a reflection of decisions by the manufacturers? "Our retail prices are markups based on our costs from the vendors."
• Or, is it all a conspiracy theory run amok? "There is no conscious effort to charge women more than men. That's just in how you sort the data. Pricing is very complex and dynamic."

Just a Caution

Before you dismiss it all as a "conspiracy theory" in search of a cause, do you even know whether any seeming patterns of gender bias (or other bias) might exist in your store's pricing?

• It may behoove you to do some inquiries! Today's technology should readily yield some answers.
• Then, be sure to show the findings to an array of folks. They may see "patterns" that could be construed as intentional.
• Are there some appearances of "persistent surcharges" for ANY group of customers? Appearances DO matter!
• And, IF there are such appearances, what should you - or could you - do about it?  

Ahh. Just another issue that only the owner can resolve. Maybe it should go to the top of the list of your New Year's Resolutions!