This is a question I hear too frequently. It’s a negative, on a job search think only POSITIVE.
A good strategy to combat this is to accept that the position may be below your skill set, but show to the potential employer the wealth of talent you will bring them on your appointment. I’m finding smaller companies appreciate a deeper skill set. A well rounded professional who can bring diverse skills to a company can span a number of roles, therefore negating the need to hire additional employees. In these days of strict cost control, saving money can be a critical element in recruiting.
In summary, if you are good and have a multitude of business skills, portray them to the optimum on your resume. Companies will pay more if you have more to offer!