Wait, you've played 30 hours in the first city and already have your characters leveled up enough to wear that kind of armor. Not sure I'm buying that. There isn't that much experience in the first town.
But, I do agree there should be a 'Seller of Dyes' in the market and they shouldn't be so expensive either.
I never bothered with dyes yet because I'm still updating my armor after every other encounter.