Pick, I think I had the same problem as you.....The step was down when we bought it, and I remember being able to make it come down when inspecting the trailer. However, after I got it home, no amount of pulling pushing or pounding would make it drop, lever up or down. I oiled everything with WD40, waited, and tried again. No luck! I was about to give up and order a portable step, when as a last resort, I pushed straight DOWN on the step and pulled the lever. I almost smashed my face against the side of the trailer the step moved so fast.
All this time I was applying pressure the wrong way. My step seems to bind against itself in the folding position, I think that's why it stuck. I appleid greese to the levers that fold against themselves (I have the optional extra step), and this seemed to help. I took me awhile to figure out how to fold out that extra step - it seemed so easy in the manual!