I would read it as you intended, they are cheaper on cost, and the quality is not as good as your product.
But it's a dicey word to be using in business, I've seen people get hauled over hot coals for inferring a competitor product was better. Just hope your colleague doesn't hate you.
But it's a dicey word to be using in business, I've seen people get hauled over hot coals for inferring a competitor product was better. Just hope your colleague doesn't hate you.


