This thread has veered off away from what the OP was asking and I’m late to the party, so I will get back to the basic question.
**How much can car performance be increased by performance shops and how do they do it? **
The first stage of improving performance is usually to increase the air flow through the engine. I see that turbo and super chargers have been mentioned so I will keep my comments to normally aspirated engines.
The first step to improving air flow through the engine is to add a Cold Air Intake or induction, (CAI). This delivers colder, denser, air into the combustion chamber. Cold, dense air contains more oxygen and thus more power. It helps to imagine that the car engine is just an air pump powered by fuel. Many new cars incorporate CAI as stock features of their performance engines now. The basic idea is to gather air from an input area that is not warmed by the heat of the engine.
The second step to increasing air flow is to reduce the exhaust restrictions. In some parts of the US this can be problematic due to DEQ testing requirements and various local laws. I live in a state that does not require DEQ testing outside of the urban areas.
To increase exhaust air flow you can install header pipes, individual tubes that come from each cylinder, and eliminate the CATS ( or catalytic converters). There are also high flow CATS that can be installed if you require them. Then install a free flowing exhaust system.
The oxygen sensors or O2 are usually eliminated unless the are required to pass DEQ. You can also install O2 simulators that will tell the computer that everything is fine with the exhaust gasses, even if it isn’t.
Once your intake air has been improved, and your exhaust restrictions have been reduced, your PCM or computer will throw a few error codes and light up your Check Engine light, or whatever it is called in your car. These error codes must then be tuned out by the shop, HP Tuners and various mail order tunes can do this, very poorly.
To maximize your newly freed up power you should take the vehicle to be Dyno tuned. Put on a dynamometer and have what is similar to a stress test a human may take to test their heart. A good shop will retune your PCM to optimize your power and take advantage of your new modifications. This can make a huge difference in the performance of the car.
State and local restrictions may apply. But air in air out is still the starting point, and best bang-for-the-buck for your performance dollar.
Also, stickers, each brand label or sticker ands at least 10 hp. 