Discounting driving lessons

Does discounting the price of driving lessons really pay?  Are we as instructors under cutting each other so much, we are now working below the minimum wage?

How can we afford to charge £15 per hour and offer such tempting deals as 5 hours for £49?  These are very good at attracting new pupils, but customers are savvy and they will take your 5 hours and then move onto the next instructor offering a similar deal!

Who has used Groupon and Google Adwords to promote their business?  They can work if you know what you are doing, but this can be time consuming and can cost a small fortune if not managed correctly.

I would love to hear your experiences, so please comment.

I am an instructor in Norwich and run How-2-Drive driving school and have just expanded taking on another driving instructor to satisfy the growing demand for driving lessons in my area.  The only offer is for the first 2 hours for the price of one, so pupils can experience the training before they decide to book more lessons, and they all do.

Take a look at my site: http://www.how-2-drive.com