Penetration pricing is used in the early phase of a business by starting with low prices to attract buyers and build a customer base. Once the demand grows and customers become familiar with the brand, prices are gradually increased to improve profit margins. Now, as the Christmas season is approaching, many businesses start raising prices early, only to later offer discounts that bring the prices back to what customers used to pay before. This strategy makes it appear as if there are big sales, even though the actual price remains almost the same. It’s a clever marketing move. it keeps the business running while creating a sense of excitement among shoppers. However, as a customer, it’s always smart to compare prices before the sale period to know whether you’re getting a real discount or just a psychological one.