Why sperm prices vary so widely: isn’t it all the same stuff?
by Dr Margaret Vereb
Medical Director Donor Match Me
Former Head of Fertility Services, Lahey Clinic
For someone new to the world of sperm donation, the wide range of prices—from approximately $290 to $795—can be extremely confusing, especially since the reasons for this range are not often made clear. However arbitrary they may seem at first, there are many factors that cause variations in price between sperm banks. Like most businesses, sperm banks have to account for overhead costs such as real estate, staffing and marketing. Sperm banks also have many of the same costs as other medical offices, including specialized equipment and scientific-grade materials and procedures, as well as some additional expenses unique to their industry. To understand why sperm prices vary, it can be helpful to familiarize one’s self with some of these costs.
Location
A majority of sperm donors are college or graduate students. It is therefore beneficial for banks to be located in areas of dense student populations—most often in large cities. In these areas, real estate is typically more expensive. The high rent a sperm bank pays for its location is reflected in a higher cost-per-vial. As a result, sperm from San Francisco, for example, may cost more than sperm from a small city in the Midwest. The size of the bank can also play a role in location costs: larger banks with more than one office will have higher overhead as a result of paying multiple rents in multiple cities.
Administration and Staffing
There are some very good, smaller banks with only one or two locations, staffed by a small group of employees, which operate efficiently in today’s market. These banks carry relatively little overhead. By contrast, larger banks often have multiple layers of administration, multiple locations, more employees, etc… therefore much higher overhead.
Marketing
For many businesses, marketing and advertising campaigns can result in increased revenue. However, not all marketing is successful, and the benefits of advertising are not always immediately realized. The more marketing a bank does–via print media, websites, and trade shows–the more cost they must absorb. Depending on the success of this marketing, these costs may ultimately result in an increased cost-per-vial.
Equipment and Consumables
Most banks still use some form of liquid nitrogen storage to safeguard their inventory. Liquid nitrogen creates an ideal environment for tissue storage, keeping sperm stable at temperatures between -346°F to -320.44°F. However, the same property that makes it ideal for tissue storage will damage or destroy containment systems over time. Liquid nitrogen must also be replenished periodically, more frequently in older systems and less frequently in newer, more efficient ones. The price of liquid nitrogen can vary depending on market supply and demand—taken together with the periodic cost of replacing equipment, and the efficiency of existing equipment, these equipment costs can make a difference in the cost of sperm from bank to bank.
Testing
There are several levels of testing that have to be run on each prospective donor, and many donors fail. In fact, it is estimated by the industry that only 1 in 100 prospective donors are accepted. When first applying, each donor is asked to give a sperm sample for analysis. The sample must test negative for all sexually transmitted diseases. The sample must also test negative for inheritable disease that may be likely based on genetic risk. For example, every donor receives both a Karyotype and Cystic Fibrosis test, while Tay-Sachs disease—more commonly carried in Ashkenazi Jewish populations—is tested for in that group, and African Americans are screened for Sickle-cell disease. Some of these tests are more expensive than others, and the costs of performing these tests are rolled into the price of a good vial.
Losses
Not all sperm samples make it into the available, searchable part of a bank. Testing, as described above, is a costly process that disqualifies many samples. However, even qualifying samples sometimes become “losses” before they can be released for sale. All new sperm donor samples have to be quarantined for 6 months, at the end of which period a donor is given an HIV blood test. Only when both their initial test and their 6-month blood test come back negative can their donations be released. Unfortunately, during that six-month window, donors sometimes become unavailable due to graduation, vacations, or relocation. If their six-month blood test cannot be completed, their samples, the cost of testing those samples, and the money paid for their donation must all be counted as losses. The more losses a bank has, the greater the effect on their cost-per-vial.
Supply and Demand
Like any commodity with steady demand, the shorter the supply of sperm, the higher its cost. Each year there are fewer and fewer donors available: fewer candidates are passing all of the screenings, and donors whose sperm has proved popular become unavailable due to limits on the number of donations they can make in a geographical area. The price of sperm is therefore in part determined by the market, the effect will change from month to month, and from year to year.
There are many factors that influence the price of sperm, and it is helpful to remember that price is not always an indicator of quality. So, when considering where to purchase your sperm, remember to work with a reputable bank that complies with FDA, AATB, and ASRM guidelines, and to consider a range of different sizes and locations before making a choice that is right for you..
