It's not all black and white. Don't make the mistake of squashing your income to save your price.
I will do a gig for $350 but, it has to provide real income, which at that level means virtually no out of pocket expense. For example, if a local school calls for a dance and I know the date poses no conflict for me than yes, I would certainly do it. A local school has virtually no expenses for me, it's a cake-walk to do, and so it's a quick payday.
For example, my kid's middle school (10 minutes away) asked about 2 dates recently. One was on a Friday when I would be setting up for a $11K event the next day. (Hotel 10 minutes from the school.) I could certainly do it - but, I would end up working much later into the night back at the Hotel. The second dance was on a Friday that was wide open. They indicated they budget about $250 for a DJ. I sent then contracts for $350 each date (no explanation, no "educating" the client, no apologies) This was the rate I could get enthusiastic about and would make it worth a break in the setup of another job. Of course, that was too much for them and they found someone else.
Nothing in there implies that they are an unreasonable or uneducated customer, or that I am an unreasonable DJ Diva when it comes to gigs/prices. We just had incompatible needs. They needed to stay on budget and I needed to stay on task.