The Scot has not been able to persuade any new players to move to Carrow Road so far, despite having compiled a list of targets.
"We're not making inroads. It's frustrating. We can't do the wages, that is a problem," Lambert told reporters. "The lads need a hand but you have to bring them in to play. It's no good bringing people in here that I think are not going to play or be a squad player or just make up the numbers.
"At the minute we are not making any headway. People have the wrong perception of the money Norwich have got to spend. You hear funds are available all the time, but when you look at the prices we can't compete with that. We are nowhere near. It's hard."
The newly-promoted side travel to West Bromwich Albion in the league on Saturday.