Let's flip this argument over. You're the businessman - and the salesman. He's a disinterested and annoyed potential customer.
You were in the professional position. He was a person in private capacity.
It's a good thing you held your temper below the assault level, but you certainly didn't hold it to the professional level.
How about this:
"I'm sorry sir, I didn't mean to offend you. Please let me pick that up. I'm the owner of this business and some of my best leads and many current accounts have come about from me distributing flyers like this. Between you and me, I don't like doing this either, but this economy is tough and lots of people have had to cut back on services. I'm just doing this to support my family and keep my employees working and I'm proud of that. This is a really nice neighborhood and perhaps some people here will appreciate work done well at a fair price. I'll try to remember not to bother you again."
Ok, so that's a total suck up, but what it shows is respectful behavior and a professional demeanor. That's the kind of guy I'd like to hire to work on my place.
