When business guys start saying "you can be replaced" or that they'll "start a competing company" the correct answer is /always/ "Fantastic! Please do, you'll make me look good.".
This guy was a clown playing for status. Where there's money there is always people playing like this. Focus on delivering value to the customers at a fair price and nothing else.
Also, if people are saying "You can be replaced" it means you can't be replaced and you're doing something right.
