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My answer will be yes sir you're right but am offering you a good product with very good price compared to other and believe me no body will sale his product in cost price and am a company have expenses to cover .
yes, it means he knows the business/ prices , so explain him your product cost effectiveness over competitors product, convert your products features into benefits/advantages for him.
As usual .. I do not know if I understand the question :-) , but I would say this: -Dear customer, our price is the final result of a careful search of the "total cost" (actual cost + services) more competitive and that most pleases our customers. Our firm is clear and does not require additional increases in surprise. Our facilities are state of the art (procurement, packaging, transportation), efficient and ready to respond to every need of the customer: calculation of stocks, sales coaching, advertising. Our product will not only be transported by us to you, it will be followed to ensure it is able to create a business for your company.