Most of us understand the difference between a buyer’s market and a seller’s market. When times are flush, the demand for goods and services rise. People have plenty of money and they are happy to part with it in order to acquire whatever it is that they want.
Since everyone has plenty of work during these times and most of the people selling goods or services are hardly able to keep up with the voracious appetite for their offerings, prices tend to rise. We feel that there is no need to offer any discounts or incentives to get a particular job because we know there is another to be had just for the asking. We love a seller’s market.
But when times get lean, things flip over and suddenly, we find ourselves competing intensely for whatever work is out there. People know this and realize that they can pretty much ask for whatever they want and almost literally name their own price. Competition can get vicious as cash strapped shops try to get every dollar they can get in the door. Buyer’s market, right?
So why don’t we have a buyer’s market now? The economy is as bad as it has ever been in our lifetime. But instead of seeing falling prices, sellers are stubbornly sticking to their guns, refusing to bargain and even raising rather than lowering prices. Demand is certainly down and anyone who has cash or any other form of buying power should be able to get deals all over the place. But as far as I can tell, sellers and vendors are acting like they don’t have a care in the world when it comes to striking a deal and maintaining a “take it or leave it” attitude that is incomprehensible to me considering the overall state of the economy.
Am I missing something here? Can anyone explain this? I’m baffled by it!