Power Flow Systems, Inc.
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Bonanza Status update

Posted April 12, 2011.

Update on Power Flow’s development project for a Tuned Exhaust System for the Beech Bonanza:

Three years ago (back in the “good old days” economically speaking), we began to think about marketing our newly developed Power Flow Tuned Exhaust System for the A36.   We planned to advertise, conduct demonstration flights for a number of magazines and owner groups and roll-out the new exhaust the way we normally do.  However,   at the same time, we had a couple of other projects that were further along in the development cycle and as the economic climate changed, we had to make some strategic decisions about where to focus our resources.  These other projects, being closer to completion, took priority.

As is often the case, everything has taken longer than anticipated, cost more than estimated and generally has not gone according to plan.  Just last month we finished-up the last of the three other projects that were ahead of the Bonanza, enabling us to once again focus our resources and bring this long awaited product to fruition. 

What were we doing?  We developed, certified and brought into production entirely new Tuned Exhaust Systems for the Cessna Cardinal 177RG, the Aviat Husky and the Robinson R22 Beta helicopter, all while doing business in the worst economy since the great depression. 

Did I mention that the process of developing an STC has changed dramatically in the last three years, and has even been evolving (not for the better, I assure you) while we were in the middle of these projects? 

So where does that leave us?  On the strength of our reputation and despite very little advertising or marketing we were able to garner 20 serious prospects, representing a wide variety of Bonanza models and engines, who committed to participating in Power Flow’s market proven Pre-STC deposit program.  

We are now finally ready to go to the community of Bonanza owners (specifically, the A36, 36, V35,V35A & B, and the S35 with IO-520s) and see if there are at least 30 people who would like to upgrade their aircraft with the performance improvements we have documented and who are willing to commit to our well established Pre-STC deposit program.  As of April 05, 2011, we have 6 deposit agreements from owners of aircraft that will be covered under our initial STC.  

Every Bonanza owner in the US that fits into this initial “group” has just been sent a postcard from us.  We will follow-up immediately with any interested prospects to explain the benefits of the Power Flow exhaust system, discuss our well proven Pre-STC deposit program and, if appropriate, obtain a commitment in the form of an initial deposit of $500.00.

As soon as we receive these 30 firm commitments, we will allocate the necessary resources to bring this new Tuned Exhaust System through the FAA’s Certification process and into production.  Without that commitment from our community of potential Customers, it would be fiscally irresponsible in today’s economy to “speculate” and take on the expensive and time consuming certification effort with no guarantee that our efforts will be recognized (let alone rewarded) by the marketplace. 

It is planned that once we have certification for the IO520, we will add the IO550 and IO470 powered variants as well.  If you have an IO550 or IO470 engine and are interested in upgrading your Bonanza with a Power Flow Tuned Exhaust, we will gladly take your name and make sure you are “on the list” to be notified as these new development efforts proceed.  

Some people might misinterpret our Pre-STC program, speculate that we are having financial problems and conclude that we need to take people’s money to keep going.   However, if that were the case, wouldn’t we have taken people’s deposits already?  As mentioned earlier, 20 individuals have already confirmed their interest in this program by providing us with their credit card numbers and giving us permission to charge an initial deposit of $500 to their account.  Unfortunately, 14 of those people own Bonanza’s that don’t fit our planned initial STC certification. 

In spite of this, we have not charged anybody’s credit card for the initial $500 deposit nor will we until at least 30 individuals owing aircraft that are included in the list above have agreed to participate in the Pre-STC program.  This initial deposit is really just earnest money.  We don’t see any more of your money until we have the STC in hand for your aircraft model.   We don’t see the balance until your system ships. 

Power Flow’s Pre-STC program has been proven by well over 100 customers during the course of our development projects for the Cardinal RG, the Aviat Husky and the Robinson R22 projects.  As a result more than 140 new Customers are flying aircraft with significantly improved performance thanks to their newly developed and certified Power Flow Tuned Exhaust Systems.

The program allows us to offer the same cost-effective performance upgrade to new markets, such as the Bonanza community, without placing an undue financial risk on Power Flow’s customers, shareholders or employees.

The economy in general and the aviation modification business has certainly been dramatically affected by the turmoil of the last three years.  We believe that it is a testament to both our conservative management philosophy and the proven value of our products that Power Flow has weathered the storm and even brought out three new STC’d Tuned Exhaust Systems.

We look forward to continuing this tradition of success with our new Tuned Exhaust System for the Bonanza and we are grateful for your interest and support.

The deadline to get your deposit in is April 30, 2011.

Darren Tilman

General Manager




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