May 2001

Installers and distributors, along with trade and consumer automotive editors, tour the new MagnaFlow Tech Center. Numerous local race vehicles sponsored by the company were on display.
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Jerry Paolone, founder and president of Car Sound and MagnaFlow, is proud of his marketing strategy of helping the muffler-shop installer succeed.

By Jim Wilder
Undercar Digest Editor

Enthusiastic.
    It's the one word that describes Jerry Paolone, founder and president of Car Sound Exhaust System Inc. and MagnaFlow Performance Exhaust. The enthusiasm also shows among his top management staff and the shop operators and technicians who install his performance-exhaust systems and emission-control products. The reason behind all of this excitement is simple. More and more installers are reaping the benefits of a successful sales and marketing strategy in a market that some believe has one foot in the grave.

    For a typical muffler shop that does mostly stock muffler and pipe replacement, the business outlook can be frightening. National Sales Director Larry Norris paints the picture while showing a company brochure that quotes statistics from USA Today and a variety of automotive trade magazines. Sales of stock replacement mufflers and pipes have dropped by nearly 50% in the past 10 years. More and more installers - even if they prefer exhaust work - are being forced to add other services in order to survive. With the growing use of stainless-steel and even titanium exhaust systems on new cars and trucks, many OE systems outlast the vehicles. So, what is there to be happy about?
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    With a love for the exhaust aftermarket, Paolone has been building his business in three specific growth markets - emission controls, performance exhaust and diesel performance exhaust. Over a two day period in late January, more than 400 individuals, representing undercar shops, distributors and members of the automotive trade and consumer press, visited the new $2-million MagnaFlow Technical Center in Rancho Santa Margarita, CA, where Paolone and his management staff extolled the virtues of Car Sound and MagnaFlow products.

    "Catalytic converters continue to be the backbone of our business, but the addition of our MagnaFlow product line also is important to our customers," Paolone said. "Conservative figures show that catalytic-converter sales have an annual growth rate of 6%, performance exhaust is at 12% and diesel performance exhaust is at 25%. Ford just produced its one millionth Power Stroke engine. Add to that the Dodge Cummins diesel trucks on the road and you have a big market potential. Shops taking advantage of the MagnaFlow and Car Sound marketing strategies can prosper with us. We want them to be successful, and we know how to help them."

    "It's no secret that consumers have been driving their pickups from the dealer lot straight to muffler

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