You aint never gonna believe this !!!

I got a phone call today from a 2 way radio competitor. He asked me to raise my prices to be more in line with his prices.I couldnt believe what I was hearing. Why would the guy that runs basicly the 3rd largest 2 way radio Co. be worried about Performance 2 Way. We're small potatos !!! He proceded to tell me that nobody will want to deal with the "whore" of the business. Well I can tell you we buy from the same Co. and he charges above retail on alot of his stuff. I charge a very fair price for my stuff . I dont overcharge and I dont undercharge period.I try to provide the best possible service that I can no dought.
But the thing that really burned my a** is he tried to get my dealorship pulled from my Dist. !!!!!Can you believe that??? He told them that I was buying radios from him before I got my own dealorship. Well I never have bought one thing from him.This is the same guy who wanted me to come and work for him but couldnt come up with what I needed to move to N.C.

Anyway just want your take on this and how I should handle it.

Thanks Brian