We often see the same product in different colors priced differently, which in many cases cannot be justified by the difference in cost of making. This article intends to find why different prices for different colors can be acceptable to consumers and profitable to sellers. We conducted two studies to investigate the patterns of pricing based on colors, and how people value product colors. We define how much the highest price is higher than the lowest price as the “color premium”. In Study 1, the market data collected from Amazon US showed that 64.67% of the sampled products have a color premium, and the average of the premium is 24.67%. Therefore, color premium is very prevalent and not negligible. In Study 2, we conducted a choice experiment, and the conjoint analysis found that people may prioritize colors over prices when certain colors are strongly disliked, which creates room for price discrimination. Besides, black is the most popular color but often priced the lowest, possibly because people looking for non-black products may already have a black one – they are on average wealthier since they can afford another, and therefore more susceptible to price discrimination. In conclusion, because 1) some consumers’ color preferences can be strong enough to make them accept a higher price for their favorite color, and 2) people looking for non-regular colors may be wealthier on average, sellers can use price discrimination against certain consumers, which leads to different prices based on colors.