That's precisely how a free market wworks and how the internet brings down the barriers and enhances productivity.
You can either make yourself more competitive or suck it up.
While I mostly agree with that sentiment, I gotta wonder how often the money is just being thrown away. A really useful program takes a good amount of time just to deal with requirements, much less write the code. If this kind of thing doesn't need to be done, there is likely an acceptable free/cheap program that will do it anyway.
It is like some of the cheap things I have bought from china. I have a nice-looking flashlight whose switch is really flaky. Yeah it was bright, and cheap, but I had to throw it away after a day. There is such a thing as too cheap.
In the world of engineering, or anything that requires a good amount of expertise, it is possible to essentially cheat the person doing the hiring. Do the job that technically meets the specs but isn't useful, copy someone else's work and pass it off as your own, make a program that appears to do what you ask but only works 90%. Because one person is an expert and the other knows very little, you can play all sorts of games with them.
There may be a few places where someone doing a quick hack for cheap works out, but I don't see that kind of need show up very often.