Sales of stainless steel in the pump and valve industry exceed $10 billion annually. This represents 5% of the $200 billion market, which is in terms of Volume Adjusted Revenue (VAR). These revenues reflect the list prices of the product including the stainless-steel based sales in high-cost countries such as Europe, the U.S., and Japan.
To derive the actual revenue in a country such as India, the VAR must be multiplied by 0.6. The quantity of stainless steel is directly related to the VAR, so it is a much better tool than using actual prices and then trying to adjust to the quantity.