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One of the first companies to operate this business model was the supermarket, two German firms Aldi and Lidl have set the standard across Europe for low cost supermarkets. Regular supermarket shelving is kept to a minimum and replaced by pallets wherever possible, once a pallet is empty a new one is brought in. They tend to only sell private label products and avoid branded goods that sell at lower margins. Plastic bags are only provided at a charge encouraging customers to recycle their old bags.
Perhaps the most common example of a no frills service is the recent introduction of low cost airlines, Easyjet were one of the groundbreaking companies that established the successful business model. No frill airlines operate with a single economy class and save money by not printing tickets instead issuing customers a reference number to use at check in. These type of airlines also tend to use smaller airports just outside large cities, this way they can pay reduced airport fees, for example Easyjet fly to Luton rather than Heathrow. Complimentary drinks are not served on board, instead a paid for trolley service is provided.
There is also a market for no frill holidays by removing services, such as in flight meals, hotel meals, airport transfers and holiday representatives, travel agents can offer customers a cheaper holiday.
Buses operators have followed the no frills example with the introduction of low cost road travel, one such brand offering this service is Meagbus operated by Stagecoach. As with low cost airlines customers buy tickets online and the receive discounts for buying earlier. A reference number is shown to the driver who has a list of all expected passengers, rather than a ticket being printer off.
No frill car hire is a recent development in the low cost market, car rental firm Sixt has introduced a cheaper alternative to expensive car hire in London under the name Sixti. By using smaller cars such as Ford fiestas and Smart cars prices start at just 9 for a days hire.
This is an overview of how the main no frills markets operate, each of these examples prove that is it possible to offer faultless service at a reduced price by removing unnecessary extras.
Next time you are looking to order a product or service why not look for a no frills alternative.
