The BIG stick and small carrot approach!

Yesterday I met a project manager from IBM Egypt, to discuss a system which they want to design its user interface. After listening to his requirements, which was a small part of a system, with its HTML and CSS, we discussed the requirements together for a while (If the customer only accepted this part, he will complete the rest of the job with IBM). And then he asked me about my time and price estimates for the project so I answered him. He did not like the pricing at all, I gave him like 33% discount, which he did not like either. By his rejection I told him I'm sorry I cannot work with a less pricing. I tried to convince him that he is paying more for quality; it seems he is not interested in quality!

Till now this is OK!
This happens every day in a lot of places on earth.

But what happens next do happen rarely!

• He tried to convince me that "why should I pay you more for a thing the customer might refuse!"
  (your work might be useless to us)

• I told him, tell me what your budget for such thing is, he said I don't know there is no budget till now for such thing, but your price is high.
  (So why is he negotiating with me if he doesn't know, he only knows that it is high!)

• We discussed the pricing for a while and I told him I can't work with less than such pricing. I tried to convince him that my pricing is ok relative to the market and I showed him samples of finsihed work with the same margin or even higher prices with other customers.
  

• The funny part, after I refused to work with less than such pricing he told me "It doesn't work that way, if I were in your shoe I would not refuse such projects. You might have better (paying more) customers, but with IBM there is more projects to come." He said it in a way that for the sake of the name I should sacrifice pricing if I am wise, because with IBM they will give me more work (might not of course!). This is a technique used by many people in the market. They start encouraging you to accept their unacceptably low prices because he will get you more work and he never does. As a matter of fact if you accept, he will finish this work with you and then do the same thing with someone else in the next job. This way he guarantees that he always gets his work done with the least prices. Needles to say that this will make his boss happy; after all he is saving money!
  (The stick and carrot approach)

This phrase is so annoying, as if he is telling you
"You are working with IBM, why take money, you are going to be famous!!"

Why do customers think that designers are desperate in finding projects, Isn’t it rude to tease someone using the stick and carrot approach?!
And isn't it rude to give the designer a less amount JUST becuase you MIGHT get him more projects?!