A no-frills service or product is a pricing strategy that offers a low price that is obtained by removing non-essential features (i.e. free coffee or waiting room magazines). No-frills businesses operate on the principle that by removing luxurious additions, customers may be offered lower prices. Furthermore, companies that use this strategy are often open about it with the intention of harnessing consumer appreciation.
Many industries use this business model such as airlines, grocery stores, and even automotive companies.
Anytime Fitness is a 24-hour health and fitness club. The company operates over 2700 franchised locations in 19 countries. The gym facilities are open 24 hours a day, 365 days out of the year. The gym charges affordable rates and monthly contracts. The company utilizes this model by removing frill services like towels or sauna. Also members have access to the gym during hours when staff is not present.
This strategy is mostly suitable for service-oriented business like repair shops, gyms, tourism or hair salons. By utilizing this, businesses can meet the ultimate consumer desire of purchasing high-quality services for affordable prices.
However, this business model also works for non-service oriented businesses like supermarkets, Lidl is an example of this.