I don't think they're going to kill the bugs they probably need the bugs alive to produce the liquid that they need to dye the fabric
The other guild also isn't doing anything underhanded. That's why the only methods to beat them are to be richer or to use unorthodox methods
I think it was implied that the bugs' behinds give the colour. They also mentioned that they can 'reproduce fast so that's okay'. I don't know...the store had a great patent for the unique dye, but they will let the guild steal and use it for their purpose. It doesn't sit right.
They are though? They stole the patent, lied to the store, then lowered the prices and took monopoly of someting the store created. I would say that is pretty underhanded. It is also likely not the first time they did it (considering how smoothly they managed it). Yes, it is how many businesses operate, but it definitely doesn't make it right or okay.
So let's kill and use bugs to create a cheap version of the previous dye, instead of dealing with bums from the guild who use and abuse others.
Surely it'd be better to punish the guild (not kill them maybe) and then go back to using a better quality, and more ethical, way of dying fabrics?
At least from the humane perspective. Purely talking about business - the cheap, bug killing method, is definitely more profitable.