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He has a defense to your claim. A valid contract must include the identity of the item and the price at very least. The statement "we'll work it out" does NOT satisfy the price requirement I'm afraid. At this point there is no enforceable contract. You have a demand of $1,000 and a counter offer of 200 which you have not accepted.
Because there is no contract, the bed is still your property and you could sue for its return. Problem: small claims court doesn't have the power to award the return of property...only money damages in a case like yours. You would have to sue in NYC Civil Court and would need an attorney.
Rich NYC attorney
This is information only, NOT legal advice. No attorney-client relationship has been created.
Ah...you changed the facts :-)...you never mentioned that email!
The $1,300 email provides the agreement on price. Bring the action
A very common scare tactic........ignore it.