Since the customer chooses 3 pens to purchase, your denominator should be $C(37,3)$. That's the total number of ways they could make their choice. To count the ways they could pick one dry one and two good ones, we just write $C(7,1)C(30,2)$ - choose one of the seven dry ones, and two of the thirty good ones. That's the numerator.
Does that way of thinking about it help at all? We're counting, out of all the ways to purchase $3$ pens, how to pick $1$ from the dry set, and $2$ from the good set.
* * *
Your way also works, because you're dividing the pens into the ones purchased and the ones not purchased - $3$ and $34$ - and counting the ways that the seven dry pens could show up as one in the purchased set, and six in the non-purchased set. That's a sideways, but equivalent approach. In symbols:
$$\Large{\frac{\binom{k}{x}\binom{N-k}{n-x}}{\binom{N}{n}}=\frac{\binom{n}{x}\binom{N-n}{k-x}}{\binom{N}{k}}}$$