Transcripts For CNBC On The Money 20160305

Now, becky quick. Two products, one for men, one for women, virtually identical, except in the price. The more expensive items, almost always the one aimed at women. Its called the pink tax and a recent study on gender pricing differences is raising some questions. First of all, why . Thats our cover story this week. And reporter dena gazozski have more. Reporter many women love to shop, but do you know that female shoppers get charged more at the register than men . New york Citys Department of Consumer Affairs recently did a study that revealed across all of the industries that were surveyed, women paid more 42 of the time for identical or similar products marketed to men. We looked at product that women would buy from the youngest age up to seniors. And what this could mean for women over the course of an average lifetime is literally thousands of dollars that women are paying for these products more than men. Reporter we decided to see for ourselves. Going to pharmacies and searching the internet. Yes, mens products seem to cost less. Hmm, same product, same weight, same size. Hmm, price. This study showed that for general toys, women paid more. Check out these boys versus girls shark helmets. The ones for girls cost 27. 99 versus 14. 99 for boys. These tshirts look almost identical, except in price. Girls pay 1 more. Shampoo and conditioner, a whopping 48 more. At least these bladder guards are priced the same. But wait, theres a catch. Look closely, you will see the mens comes with 52 pads, the womens 39. These are issues of national concerns. These are not concerns that are indigenous to only new york city, because many of the products we sampled were national chains. It costs more for a woman . Mmhmm. Wow. Thats terrible. Especially when women dont make as much. I think that is unfair. Women are almost prone to actually shop, spend what theyve got to spend. In some cases, this could be even a positive for the brand, to really come out and take a step forward and say that we recognize that theres an issue, its kind of an issue that, frankly, has not been significant in the past. The commissioner told us that she sent letters to the ceos of every manufacturer and retailer of the 800 products they sampled and urged them to change this practice, but no one responded. The companies did get back to us. Some said prices were up to the retailer while others said the manufacturers set the cost. And some said different formulas were used for men and womens products. Let me guess, the manufacturer said it was the retailers fault and the retailer said it was the manufacturers. Exactly. Dena, thank you very much. So how widespread are the gender differences that come in prices . Joining us right now are prachi gupta, Senior Writer for cosmopolitan. Com and jenny darroch, you a of th author of y marketing to women doesnt work and also a professor at the druker school of management. Lets get right down to it. Is there any justification for these pricing differences . Well, i think that that is a very complicated question, but what we do know is that women are not even aware that this is happening. So i think the real problem is that women are confused as to, you know, why are they being charged more . And the first step with this study, what this study really does is raise awareness about this issue. Yeah, i have to say, the awareness factor is a big one, because this makes my blood boil a bit. Jenny, you say sometimes there actually is justification. What would be the justification . If you look across all products, you can look at ingredients and argue that some ingredients are different. But the bigger issue is the marketer has been trying to change the brand story. Were saying, look, i put this skin care product and i know you Value Ingredients one, two, three, four, but now im telling you to Value Ingredients five, six, and seven and the consumers are willing to do this. And i think thats something thats a different issue, something i called pink expectation. For women, they turn up at the oscars, the focus is on the dress, the makeup, the hair, the shoes, the accessories, things like that. But the expectation, what i call the pink expectation, that we should aspire for certain brand values and brand attributes. Youre saying that marketers charge us more and market to us in a different way because were suckers . To an extent. From a marketing point of view, to a good marketer, you want to create points of difference. If you tell me that the skin care range is going to make me 25, if i wanted to look 25 and i believed your claims, i might buy the skin care product and pay more for it. It so takes two, it takes the marketers coming to us with brands and saying, this is our story, these are our points of difference, but at the same time, the consumers have to value the story that marketers are giving us. I guess that gets back to your point of just being aware of this issue and making us mad enough to the point where we say, were mad as hell and not going to take this anymore. Absolutely. When you start thinking about the overall impact, that women earn less than men, how does that magnify this story . Women on average are earning 78 cents to the male dollar, theyre also being expected to pay more for everyday products and that will add up to thousands and thousands of dollars over their lifetime. So, you know, the things that women what women can do about this is obviously, now that they know, that their knowledge is power. And go to companies and question this. And ask them to explain this, why are they doing this, and really protest. And they can also protest with their dollars, and over time, hopefully well be able to change things. Sure. Jenny, what you would recommend to women who are watching at home or people who are just interested in this . What can they do . Armed with information, i think we can make different choices. I dont know why we should pay more for products that are for all intents and purposes equal. I think we need to share information, talk about these issues, and hold brands accountable. So i think from a consumer point of view, you know, we are holding brands more accountable. The brands are doing well are the ones that are trustworthy, and this is just another example, where, you know, the pink tax, were being charged more for products, we dont think we should be charged more for products. Brands, you need to be held more accountable for this. And part of it is wisdom comes with age. And i dont buy the pink razors anymore, either. Lets start the movement right here. Pink power, were all in favor of it. Thank you both for joining us today. Thanks so much for having me. Now heres a look at whats making news as we head into a new week on the money. A stronger than expected employment report for the month of february. The economy created 242,000 new jobs. And numbers for previous months were revised higher. Health care and retail showed strong growth and the unemployment report held steady. That rate at 4. 9 . The markets were mixed on that. Stocks flat in early trading on friday, after kicking march off with a bang, with a 350point increase earlier in the week. Stocks climbed at the close on friday. A survey measuring the strength of the Services Sector of the economy showed it wasnt that strong in february. The ism nonmanufacturing index slowed to its worst pace in two years. And if youre planning to visit the Magic Kingdom anytime soon, you may have to pay more, or you may not. Disney will be rolling out new seasonal prices for singleday tickets, breaking them down into value, regular, or peak. The pricing will be available on a calendar at least eight months in advance. Up next, were on the money. Billionaire investor Warren Buffett has some words of wisdom if youre looking to grow your retirement savings. Of course, thats not all we talk about. And later, one Small Program thats having a big impact on the lives of young people just looking for an opportunity. Right now, as we head to a break, take a look at how the stock market ended the week. Warren buffett is the third wealthiest person on the planet, and when he speaks, we like to listen. I recently sat down with the man many call the worlds greatest investor and got his take on americas future, a little bit of politics, and what to do if youre worried about your retirement savings. I would tell them, dont watch the market closely. You know, if they buy Good Companies buy them over time, theyre going to do fine ten years from now, 20 years from now, 30 years from now. If theyre trying to buy and sell stocks, buy and worry when they go down a little bit, and think maybe they should sell them when they go up with, theyre not going to have very good results. The money is made in investments, by investing, and by owning Good Companies for long periods of time. Thats what people should do with stocks. All they are is little pieces of businesses. And the businesses generally are pretty darned good. We know that low oil prices are supposed to go good for the consumer, supposed to be good for the economy. And yet the last many, many months, weve been watching stock prices come down every time oil prices come down. Are low oil prices good or bad for the economy . Theyre good for the economy. I mean, if oil cost nothing, it would be wonderful for companies that imported oil and terrible for companies that exported. You import, you want the price to go down, anything you export, you want the price to go up and were producing more oil than we used to, but were a big oil importer. Its good for the United States overrule, but the part thats good, which means that you pay a little less at the pump the next time you fill your tank, that bleeds in very slowry and in very small amounts of people. When oil goes from 100 to 30, all kinds of bankrolls go bad, so the bad effects to the people that are in the production business get instantly felt, and they spread through the economy very quickly and the beneficial effects just kind of gradually ooze in. The president ial field is narrowing at this point. What do you make of the trump phenomenon . Well, im very surprised. I mean, my partner, charlie, says never underestimate a man that overestimate himself. And i think you see a lot of that in business. And sometimes you see it in politics, too. And its ive been totally surprised. Obviously, he appeals to a big segment of the people that turn out in a republican primary. I my candidate happens to be hillary clinton, and i think she will be president of the United States, but ive never seen anything like the republican primary. And i did go to kindergarten. I didnt see it there either. Bernie sanders is a socialist, and hes done fairly well in the debates too. Among the young, hes done sensationally. So what do you think about that . He knows what he believes in, he articulates it well and cares about things a lot of people care about, the influence of money in politics, the extreme inequality in terms of the results in a very prosperous economy, and a lot of people are getting left behind. Do you agree with his solutions for some of those problems . No, i dont. I think hes wrong. In april this year, for the first time, Berkshire Hathaways annual meeting is going to be webcast. People wont have to be here live, which has been i will. But theyll be able to see you and your partner, charlie munger. Yeah. Why is that . Well, theres two reasons. One is weve sort of run out of space in omaha. Were getting over 40,000 and its a strain on facilities. But beyond that, i think if youre in a business and your managing partners are 92, which charlie is, and 85, which i am, you probably ought to get a chance to see him. And a lot of people cant come to omaha. You know, its expensive to travel here and all of that. So well be on for six hours, and people can decide whether we really should be cutting out paper dolls or running berkshire. I want to thank you so much for your time. Really appreciate it. Its been fun, thanks. Up next, were on the money. From looking for a home and a job to working for a Silicon Valley tech firm. How one nonprofit fueled a young mans journey. If someone told me three years ago i would be doing what im doing today, i wouldnt have believed it. I might have even laughed. And later, tapping into the booming business of beer. The flu virus. Its a really big deal. And with fever, aches, and chills, mom knows it needs a big solution an antiviral. Dont kid around with the flu, call your doctor within the first 48 hours of symptoms and ask about prescription tamiflu. Attack the flu virus at its source with tamiflu, an antiviral that helps stop it from spreading in the body. Tamiflu in liquid form is fda approved to treat the flu in people two weeks of age and older whose flu symptoms started within the last two days. Before taking tamiflu tell your doctor if youre pregnant, nursing, have Serious Health conditions, or take other medicines. If you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. Children and adolescents in particular may be at an increased risk of seizures, confusion, or abnormal behavior. The most common side effects are mild to moderate nausea and vomiting. Antiflu . Go antiviral with tamiflu. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. The Unemployment Rate for africanamericans in their early 20s is more than double that of that their white counterparts. Its an issue steeped in history, economics, and opportunity. But there is one Remarkable Program looking to bridge that divide. Senior personal finance correspondent Sharon Epperson joins us right now with more. This unique initiative is helping young adults who are unemployed or in lowpaying jobs find better careers. Its success has made it so competitive that only 20 of applicants are accepted, but for those that do get in, the impact is life changing. There were times where i didnt know where i was going to eat, i didnt know where i was going to sleep. Reporter at 18, Brandon Jordan was a high school dropout, homeless but not hopeless. I ended up realizing that i need to do what i need to do. Reporter he eventually got a ged and an apartment with friends in atlanta. He took some college courses, but didnt have the money to finish. I wanted more for myself. But i didnt quite have the opportunity. Reporter but that all changed. While working at a panera last summer, he saw an ad for a year up. Jordan, now 24, applied to the nonprofit, which offers low income young adults training and a corporate internship. It seems too good to be true when you first hear about it. Reporter more than 6. 5 million 16yearolds to 24yearolds in the u. S. Are not in school or working. Almost one third of them are black. Yearup, which offers a stipend and College Credit to each participant, is aimed at helping these socalled opportunity youth. Students go through a sixmonth boot camp, learning technical and professional skills, including the importance of showing up on time. Theyll get a stipend for every day they attend class, but theyll lose points and money if theyre late. Dress unprofessionally or fail to complete assignments. And if they lose too many points, theyre out. Yearup fundamentally believes that you hire for skills, but you fire for behavior. Reporter jerold tretavian founded yearup in 2000. We know that talent is distributed evenly across this country, yet opportunity is not. Reporter more than 13,000 people have gone through the Program Since it started in boston with 22 students. 3,200 will enroll this year in 13 metro areas. Tretavian hopes to finish it in 30 metro areas. 25 of those who start yearup dont finish. Those who make it through the First Six Months are awarded a sixmonth internship. About 250 companies have partnered with yearup and have spent almost 28,000 to cover the costs of each intern. Yearup alum Brian Goodson was working in a pizza shop three years ago. Now hes a Business Solutions consultant at salesforce. Com, which has hired more than half of the almost 200 interns its hosted since 2009. If someone told me three years ago that i would be doing what im doing today, i wouldnt have believed it. I might have even laughed. Reporter 85 of yearup alums have a fulltime job or are enrolled in college fulltime within four months of graduating. Their average starting salary is about 36,000 a year. Jordan hopes to follow goodsons path. He landed an internship in the i. T. Department at the retailer aarons. I was like, i did it i westerned this. Im going to do this. This is mine. This is mine. The yearup experience doesnt end when a student finishes his or her internship. Alumni like Brian Goodson continue to be involved in the program, mentoring other yearup interns. Its something many of the students in atlanta said they were going to do, as well. That was really interesting hearing about, okay, were going to let you into this program. Thats a little bit of a tough love message. Youve got to come and bring your game. But the reason why theres tough love and they start it at day one is because companies are investing a lot of money into this program. So theyre really seeing this as a pipeline for themselves, for these various corporations, and they want the students to be prepared when they get in that door. Sharon, thank you. Sure. Up next on the money, a look at the news for the week ahead. And dreams really do come true. How about this for size. Majoring in beer. For more on our show and on our guests, you can go to our website, otm. Cnbc. Com, and you can follow us on twitter onthemoney. Here are the stories coming up that may impact your money this week. On monday, well be getting a report on Consumer Spending for february. On tuesday, a look at the health of Small Business when the Small Business optimism index is released. Wednesday marks the anniversary of the dow, the nasdaq, and the s p 500, all hitting multiyear lows after the financial crisis. And on friday, well get a measure of americas trading power with the import and export prices for february. Beer. The very word brings smiles to plenty of faces, but there is big business behind all those suds. And although sales nationwide may be flat, pintsized brewers are showing good growth. That in turn is creating thousands of new jobs. Mary thompson has more from the half full brewery in stanford, connecticut. Mary . You know americas thirst for fuller flavored lager has helped push the number of breweries here in the u. S. To more than 4,000. Thats a number that hasnt been seen since the late 1800s. And behind that growth is the the rise of craft brewers, like half full brewery. Still, the market for this kind of beer is not saturated, and thats good news for people who want to work making suds. Only three years old, half full brewery is going at full speed. We currently brew roughly 3,000 barrels a year. Were trying to get to 15,000 barrels five years from now. Reporter a goal requiring more hands, mouths and heft. As we go from 3,000 barrels to 5,000, to 7,000, well be adding roughly two to three people every step of the way. A lack of experienced workers making the steps more challenging for owner connor horrigan, who like others want to adds seasoned workers to its current staff. Demands for these workers behind San Diego State universitys decision to offer a professional certificate in the business of craft beer. Im trying to get into the marketing aspect of it. A home brewer for five years, 27yearold Ashley Benson is among the more than 600 students who have taken courses, hoping to make beer their bread and butter. We get the emails saying we want to hire directly from your group, because we know that they can talk about beer. Students learn more than talk, though. Program director Gianna Rodriguez says classes teach them how to write a business plan, get financing, and run a brewery. So becky, this ancient product is of course giving rise to a number of Small Businesses around the country, giving job seekers something to cheer about. And they can toast salaries the that range from the mid20s to six figures for more experienced workers like brew masters and brewery managers. So becky, im going to drink to that. Cheers. Ill drink with you, but im drinking water. Mary, i know that theres been really rapid growth in all of this. I like it i know theres been really rapid growth for people in these kraft breweries. Is there any chance that they could turn their tastes, or is this something they just see going up and up. Reporter well, the trade association, the Brewers Association doesnt see that right now. They say the young demographic is very much invested in these craft breweries. And what theyre expecting is that craft breweries account for about 12 of total volume of beer sales here in the u. S. And they expect by the year 2020, they will account for 20 . So thats pretty steady, or you could say, heady growth, for this industry. Back to you. Thank you so much. Thats the show for today. Im becky quick. Thank you so much for joining me. Next week, mission to mars. The head of nasa on the space agencys goal of sending astronauts to the red planet. Each week, keep it here. Were on the money. Have a great one and well see you next weekend. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. Great, thats what i said. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Hey there, were live at the Nasdaq Market site and look who is joining us tonight. Thats right. The guys are getting ready and heres whats coming up on the show. And the butchery begins. You got that right, frank, because were looking at some of the most hated stocks on wall street and telling you which ones you should trade or fade. Plus, one of the markets leading indicators just did something remarkable. Highfiving a million angels. But could things be just a little too good to be true . Well explain why you might want to stay out of the rally. And, well, that pretty much sums up the move in emerging markets lately