Canvas Hub Buyback Program and 2022 Supply Chain Update

Hi Everyone,

It's been amazing to see Palette 3 units begin arriving to hundreds of users across the globe. If you ordered as part of our air shipment batch you should have received, or will very shortly receive, your Palette 3. Those of you who ordered as part of our ocean batch will receive them around the end of November to early December. 


If you haven’t seen them yet, there’s been a few unboxing and setup videos beginning to surface online. We recently launched our Palette 3 Unboxing Video, and you can take a look at some of the early user prints on our Facebook User Group


Many of you may have heard of the global supply chain challenges that have come up in 2021. From challenges unloading containers at ports, to chip shortages across almost every industry - 2021 has been an incredibly challenging year to source, manufacture, and ship products. 


Our goal is always to be as transparent and up front with our Palette community as possible. We expect supply chain challenges specific to our Palette 3 line of product to impact product availability in 2022. This post will outline what you can expect from us over the remainder of the year, and into the first half of next year. 


Before we begin - we want to be clear that any Palette orders to date will not be impacted by the challenges outlined in this post. If you have ordered a Palette via us or our resellers prior to this post, your unit has been built and (if it is not yet delivered) is either on its way (Air Shipping), or will be on its way out of our factory this week (Ocean Shipping). 


This post will cover three main topics, outlined below:

1. Expected supply issues due to worldwide chip shortage

2. Canvas Hub S and Raspberry Pi Compute Module 3+ Buyback Program Survey

3. Potential price increase in 2022


    If you’re not interested in the details, we’ve provided a summary at the end of this post. 


    Chip Shortage 


    The world’s supply chain has been going through a number of challenges over the past 2 years, the most recent and widespread challenge is a worldwide shortage of various chips. If you’re interested in learning more about this shortage, and how it's impacting some of the world’s largest companies you can check out this article on how the shortage is impacting Toyota


    Each Palette 3 / Pro unit has a number of circuit boards inside; the one that is causing us the largest challenge at the moment is the Raspberry Pi CM3+. 


    This board is the brains of the product, handling communication with the printer and hosting the Palette’s operating system. 


    We have some incredible partners in the supply chain space, and we’ve been exhausting all supplier routes the past three months; however, it looks like we won’t be able to get stock of this board until early 2022. 


    With this estimate, we expect that the next batch of P3 / P3 Pro units will arrive at our US and EU warehouses in April 2022, at the earliest. We are currently in the process of looking for alternative suppliers; however, many suppliers have listed lead times in the 6-9 month range. 


    Based on this feedback and the current state of the worldwide market we believe that April 2022 for the arrival of our next batch is a realistic or slightly optimistic expectation and projection. 


    Based on our current inventory levels, we expect to be out of stock around the end of this year / January of 2022. This expectation leads us to our next point. 


    Canvas Hub S Buyback Program


    In 2019 we launched our Palette 2S, Palette 2S Pro, and Canvas Hub S. The board inside of the Canvas Hub S, while slightly different, could be repurposed to be used in the manufacturing of Palette 3 / Pro. Because of this, we are investigating the possibility of running a buy back program of Canvas Hub S units from our community. This program has the following benefits: 

    1. Upcycling electronics and reducing waste from the manufacturing process

    2. More available supply of Palette 3 units for the market

    3. Discounted prices for participants, or additional cash

     


    There are two ways this buyback could work: 

    1. If you send in your Canvas Hub S (CHS), you will get a $100 discount on the price of a Palette 3 Pro (699 USD + shipping purchase price). This will also reserve a P3 Pro for you out of our next batch. Mosaic will cover shipping of your CHS / Pi unit to our office. 

    2. Mosaic will buy your used CHS back for $70 USD, and pay for shipping to our Toronto office. 


    Once your CHS is received, Mosaic will run a test to ensure the unit is functioning properly. Once that test is passed, we will reserve your place or send out the $70 payment (depending on which option you choose above). 


    If, for any reason, your unit is not functioning on arrival at Mosaic’s office, you will be responsible for the return shipping cost back to your location. If your Canvas Hub S or Raspberry Pi Compute Module 3+ is functioning properly, and packaged correctly for shipping, it should pass our commissioning test. 


    If this program is successful, we could have additional inventory prior to the April 2022 timeline stated above. 


    If you are interested in participating in this program, please fill in this survey by November 5th.


    Survey


    For this program to make sense, we will need to see a sufficient amount of demand from the community. Please do what you can to spread the word to others, and fill out our survey here. 


    In addition to the above, we are also offering purchases of the following Raspberry Pi compute models:


    Any Raspberry Pi Compute Module 3+ (Lite / 8GB / 16GB / 32GB variants) (pictured below)



    Potential Price Changes in Q1 2022


    When we made the shift from Palette 2S to Palette 3 we did everything we could to increase functionality, while keeping the price the same. For those of you who worked with our P2S and P2S Pro products, you’ll remember our Canvas Hub S product that was sold alongside. The P2S retailed for $599 and the P2SP retailed for $799, with the CHS unit at $139. 


    The P3 and P3P now have the functionality of the Canvas Hub S inside them; however, the price remained the same as the last generation of products.


    With supply chain challenges and risks going into 2022, we may be in a position where we will need to increase the price of both Palette 3 and 3 Pro by $100 and $200 respectively starting in January of 2022. We will be holding the price constant through the rest of 2021; however, we want to give all of you a heads up of potential price changes in the future. 


    There is a significant chance that we are sold out by the end of December. As soon as we run out of inventory, we will automatically be switching over to the pre-sale option, with pre-sale units beginning to be shipped in the April / May 2022 time frame. 



    Summary: 

    • There is a worldwide chip shortage that is affecting companies in a range of different industries, including: Automotive, Computing, Electronics. 
    • Due to these shortages, we will likely run out of stock of Palette 3/Pro later in 2021 or early 2022. 
    • We are investigating the feasibility of a repurchase program of Canvas Hub S units. 
    • Due to supply shortages, we may be forced to increase our price in 2022.

    Mosaic’s community has been incredibly supportive of us since we launched our Kickstarter back in 2015. We’ve seen people come together for their love of 3D printing, and expanding what 3D printers can create.


    We always try our best to be up front and communicative with what we’re going through as a company, and we really appreciate everyone’s support as we work through navigating 2021 and 2022’s supply chain challenges for Palette. 


    Our goal is to do everything in our power to ensure that you have an incredible experience with our products, and our company as a whole. By illustrating the challenges we’re going through, and working on a potential solution to solve them together, we're aiming to create a net positive to allow us to continue bringing products to you, decrease waste generated in the manufacturing process, and pass on these benefits to you along the way. 


    If you have any questions, comments or feedback on any of the above, please do not hesitate to reach out to our team at support@mosaicmfg.com, on Twitter @MosaicMfg, Instagram @mosaicpalette, or on our Facebook user group.


    We will provide an update in the coming weeks regarding the Canvas Hub S buy back program and will ensure to communicate any updates or changes to the points laid out in this post. 

    - Mosaic Manufacturing