Not true, not fully anyways, though indeed there is some of this too.
The best way to do business is always to seek out the win-win solution. When there's a win-lose dynamic one party is jaded, and that is bad for business. In the short term one party might make money, but to do right business you almost have to not worry about money (which I know sounds hilariously oxymoronic). It is better to sacrifice a little profit to gain a win-win situation because in the long run by maintaining your word, relationships, and reputation you have more chance of success by continuing to do business and you mitigate more risk.
To use an example. Let's say I am selling fruit. One batch of fruit is good, one is bad. Now I could sell both the good batch and the bad batch and make a lil money, but then the customer would be losing and would be jaded against me rightfully so. They might never do business with me again, they might spread word that I sold them an inferior product, etc. On the other hand I could throw away the bad batch and sell the good batch, take a small short term loss, but the customer is happy and stays my customer, maybe spreads word that my fruit is good, etc.