Tom has a point. Look at the prices vacuums fetched in the 1960s, 70s and 80s. Some of them sold for dollar values as high as we pay today for lower cost new vacuums. In another thread comparing 1959 vacs we see some prices as high as $125. Many others in the $60s to $80s. Those were 1959 dollars. Some of the mid 1980's Kenmores shown in catalog pages here were listing at $500 or more. In todays dollars those were thousand dollar vacuums, and they sold in large numbers.
Most people would not pay the 1985 list price for a new production vacuum with equal features and quality today (good luck getting plastic as nice as was used back then or equally durable motors and switches), considering it too expensive. Heck, Kenmores best canister vac sells for less today than their best canister shown in the 1984/85 Sears catalog. That's amazing to me. Yet our parents and grandparents paid those prices on half the take home pay and considered them to be well bought. Now, the average Walmartian would scoff at paying five bills for a vacuum. Heck, there is a new Kenmore Intuition sitting at the local Sears outlet with a price of $249 and they still cannot get rid of it.
Tom is right, all people want today is cheap. But also consider we have more ways to spend our money on, pcs, smart phones (one for every family member aged ten and up), big screens (one in every room), quads, dirt bikes, fancy rice cookers that cost more than many vacuums (I'm guilty), you name it. So people are price sensitive to things like vacuums that have no status or entertainment value to them. It's just a tool, an expenisve broom with a motor.