From Midwest to Metro: The Economics of Fair Pricing
- Dawn Hartfelder
- Apr 29
- 5 min read
Updated: May 13
April 29, 2025 - In Part 1 of this three-part series, From Midwest to Metro: The Economics of Fair Pricing, we tackle one of the most overlooked realities in everyday commerce: how regional cost of living fundamentally drives the prices of goods and services. Anchored by real-world examples and hard data — from Big Macs to boutique porch geese — this section explains why minimum wage discrepancies across the U.S. serve as powerful indicators of broader economic conditions. Social media outrage over pricing differences often stems from economic illiteracy, not injustice. Through this analysis, readers will understand that fair pricing isn't emotional or arbitrary — it's regional economics at work.
Price variability across the United States is not an inefficiency—it is an economic necessity. Fair market pricing, when examined through the lens of regional economics, reveals how geographic realities, environmental demands, and the high cost of cultivating expertise drive justified and strategic price differences. Apparent “overpricing” evaporates when measured against regional cost of living indexes, minimum wage benchmarks, durability standards, and the considerable labor and knowledge investment embedded in high-quality goods and services.
Regional Cost of Living as a Determinant of Pricing Structures
The catalyst for this exploration into regional economics was, fittingly, a common yet revealing experience on social media. In today’s interconnected world, platforms like Facebook have become modern marketplaces—but they have also become hotbeds of economic misunderstanding.
One particular encounter made this glaringly obvious. After listing a highly discounted, artisan-made lawn jockey for $850 (original retail price $1,100, crafted by SeeYourColors.com, a recognized leader in premium statuary), I received not a question about the quality, artistry, or materials, but a direct message: "But I just want one." As if personal desire alone, detached from any understanding of cost structures, could - or should - dictate price.
Sadly, this wasn't an isolated case. A similar, even more revealing incident unfolded within a niche but vibrant community: the "Official Facebook Page of The Porch Goose Club of America," a joyful gathering of over 232,000 enthusiasts who lovingly share photos of dressed-up porch geese. When a member posted a new concrete goose for sale at $170, the backlash was swift and brutal. Over fifty disparaging comments accused the seller of greed, price gouging, and ignorance. The situation escalated to the point that moderators, in an extremely rare move, deleted the post entirely.
These examples, while anecdotal, expose a broader, critical economic blind spot: many Americans fundamentally misunderstand how regional cost-of-living metrics drive fair market pricing. Emotional reactions of "overpriced!" often ignore the measurable, structural realities behind the price tag.
To illuminate this further, we turn to one of the clearest economic indicators available: minimum wage differentials across U.S. states.
Minimum Wage as an Economic Barometer
The federal minimum wage remains stagnant at $7.25 per hour, unchanged since 2009. However, recognizing that a single wage standard cannot account for massive geographic disparities, many states and cities have established their own minimums. The differences are stark:
State | Minimum Wage 2024 | Notes |
Georgia | $5.15 (federal applies) | Applies only to certain small businesses. |
Wyoming | $5.15 (federal applies) | Similar federal application. |
Montana | $4.00 (select businesses) / $10.55 (otherwise) | Variable based on business size. |
California | $16.00 | |
Connecticut | $16.35 | |
New Jersey | $15.49 (effective Jan 1, 2025) | Indexed to the CPI for ongoing adjustments. |
New York City | $16.00 | |
Washington State | $16.66 | |
Washington, D.C. | $17.50 |
(Source: U.S. Department of Labor, 2024)
This range—from $5.15 to $17.50—represents more than just wage policy. It reflects deep, tangible differences in the cost of maintaining even a basic standard of living in various parts of the country. It costs exponentially more to exist in San Francisco, Seattle, or Manhattan than in rural Oklahoma or Wyoming.
Accordingly, businesses must calibrate their pricing structures to survive. Labor, real estate, utilities, transportation, insurance, regulatory compliance, and raw material costs all scale differently across regions. Without responsive pricing, businesses would simply fail in high-cost areas.
Real-World Impact: Pricing the Everyday Experience
To illustrate how regional economics shape daily life, consider the following "Day in the Life" snapshot—comparing prices for universally familiar products across different regions:
Product | Lowest Price & Location | Highest Price & Location | % Difference |
McDonald’s Big Mac | $3.49 – Stigler, OK | $8.09 – Lee, MA | 132% |
Starbucks Grande Latte | $4.15 – Kansas City, MO | $6.45 – New York, NY | 55% |
Rotisserie Chicken | $4.99 – Midwest Costco | $8.99 – San Francisco, CA | 80% |
Movie Ticket | $7.00 – Des Moines, IA | $17.00 – New York, NY | 143% |
Boutique Ice Cream (per scoop) | $3.50 – Asheville, NC | $7.00 – San Francisco, CA | 100% |
Six Flags Admission | $50.00 – St. Louis, MO | $90.00 – Jackson, NJ | 80% |
Craft Brewery Pint | $4.00 – Asheville, NC | $8.00 – Boston, MA | 100% |
Cement Porch Goose | $90.00 – Rural Ohio | $180.00 – Knowlton, NJ | 100% |
(Sources: Pantry & Larder’s McCheapest Map, Starbucks Local Pricing Data, National Association of Theatre Owners, Local Grocery Surveys, Six Flags Pricing, Craft Brewery Association Data, Direct Artisan Pricing)
The consumer who picks up a Big Mac, Starbucks latte, rotisserie chicken, a boutique ice cream scoop, and a movie ticket will pay anywhere from 40% to 143% more depending on where they live.
This is not "greed" — it’s regional economics in action. It reflects higher labor costs, higher commercial rent, and steeper operational expenses.
Especially for artisanal goods—such as the aforementioned concrete porch geese—the differences are even more stark. Producing a cement statue in New Jersey, where insurance, labor, and compliance costs are vastly higher than in rural Ohio, necessitates a price difference. It's economic science, not personal exploitation.
Economics, Not Emotion, Governs Price
The Facebook skirmishes over porch goose pricing are not merely amusing; they are symptomatic of a widespread lack of economic literacy.
Fair pricing is not driven by arbitrary greed or customer manipulation. It is the natural, inevitable outcome of localized cost structures. Labor, materials, utilities, real estate, and regulatory environments differ drastically across the United States — and responsible businesses must reflect these realities in their pricing.
Emotional objections to pricing are understandable but ultimately irrelevant in a market governed by measurable economic forces. Educating consumers about the role of cost-of-living, minimum wage policy, and regional operational costs is essential for building healthier, more sustainable marketplaces.
Fair pricing is not a flaw in the system; it is a critical, necessary feature of regional economic health.
By Dawn Hartfelder, MBA Candidate
Dawn Hartfelder is a Marketing Analytics Specialist at Sweet Media, where she deciphers consumer trends and marketing data with a sharp eye and sharper instincts. She is currently pursuing her MBA through Arizona State University (ASU). Dawn cut her teeth leading major initiatives inside some of New Jersey’s largest — and notoriously chaotic — nonprofit organizations, where navigating politics, dysfunction, and outdated systems became a second area of expertise. Today, she channels those hard-earned lessons into her writing, blending data-driven analysis with a real-world understanding of what actually works beyond the textbook.
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