Development of a Real-Time Dynamic Pricing and Margin Control System for Multi-Channel Gold Retail

The client operates in a low-margin, high-value gold sale business where fluctuating gold prices and multiple sales channels introduce significant risks of mispricing. Delays in price updates and manual price setting lead to margin losses and inconsistent customer experiences. The client requires a system capable of synchronizing real-time market data with internal pricing strategies, ensuring consistent margins and accurate pricing across all platforms, including ecommerce and physical stores.

A mid to large-sized physical gold distribution and retail company seeking to enhance their market share through automated, real-time price management across multiple sales channels.

• Enable real-time retrieval and synchronization of gold market prices from external sources such as major trading exchanges.
• Implement a high-performance calculation engine to dynamically recalculate and distribute offer prices based on real-time market data, product specifications, sales channels, and predefined margin rules.
• Develop an internal configuration and monitoring portal for flexible price rule management and historical price review.
• Automate the distribution of accurate, timely pricing updates across multiple sales channels, including ecommerce platforms and physical store systems.
• Reduce mispricing incidents and margin losses caused by delayed or manual price updates.
• Support scalable expansion of sales channels while maintaining price accuracy and margin control.

• Integration with external real-time pricing feeds from gold trading markets such as London Metal Exchange or equivalent sources.
• A custom calculation engine that adjusts base prices using configurable and dynamic rules based on product type, sales channel, and margin targets.
• A centralized web-based price control and monitoring portal for configuration, rule management, and historical analytics.
• Multi-channel price distribution to both on-premise systems and cloud-based ecommerce platforms.
• Automated update scheduling to ensure prices are current with intraday market fluctuations.
• Audit trail and historical records of price changes for compliance and review.

• Market data feeds from commodity exchanges (e.g., London Metal Exchange)
• Internal sales platforms including ecommerce websites and physical store systems
• Third-party cloud ecommerce platforms
• Historical price data repositories

• System must support sub-second latency for price updates to prevent mispricing.
• High availability and fault tolerance to ensure continuous operation during peak trading hours.
• Scalable architecture to accommodate increasing sales channels and volume.
• Strong security measures for sensitive market and pricing data.
• Audit logging and compliance features to track all pricing changes.

The implementation of a real-time pricing and margin control system will enable the client to expand sales channels confidently, reduce mispricing incidents, and lower margin erosion. It is expected to achieve near-instantaneous updates, improving market responsiveness and customer trust, ultimately supporting growth in market share and revenue without sacrificing profitability.