If you are afraid to raise your rates, raise them but have something like "10% off if you book now" so you still keep the same prices but it appears people are saving money (always a plus)
As for bands, if you want to do local bands, go to some local shows and offer to work for free (they pay for prints, but your time doesnt cost them anything). Small bands usually dont have a lot of money to spend, so a free photoshoot (perhaps to be used in the booklet of their upcoming album) fits the budget perfectly. As payment you have them mention you whenever they use the pictures, so if it is for an album make sure your logo is displayed somewhere on the album. Not only that, but if they like what you do, they will spread the word and all local bands know other local bands, its just part of the life.
Good luck and dont give up.