Sorry to hear this. I for one am surprised by their response, especially if you were/are a viable candidate for the position. It seems like the so-called "experts" on interviewing/hiring typically say that negotiation is not only warranted, but expected, whenever you are a strong candidate for a position. I've read tons of articles from these same experts chronicling the mistakes people make by NOT negotiating correctly, or even at all when offered a position. Having said that, it could be that these same "rules" no longer apply due to how bad the economy is? :shrug:
I was offered a position about 3 months ago in which I asked for about a 3-4% increase in salary from what they were offering, and I was very surprised when the HR department seemed to be taken aback by my counteroffer. I wasn't asking for more money just to ask for more money -- I actually had more experience than what they required, and they even said that in the interview. They ultimately met my number, but it was like they just expected me to agree to their first offer. I thought it was strange at the time, but are people really not negotiating at all due to the economy?