It is less expensive either way. The point is that it is only marginally cheaper and that at his own quoted prices, he loses money using knock offs even if he orders in the most uneconomical way possible.It is if you are a vat registered company
I can only assume that he isn't doing enough services to order any other way. Still think its insane. But if he is happy losing money actively promoting a product his customers can buy from his suppliers, no amount of logical discussion will change that.