I have raised my prices! I took the plunge and did it even tho it was scary! I got with my clients that I'm doing baby pictures until age one for and told them I would honor the current prices until their child reaches age one, so hopefully not to lose them. I may come off sounding dumb for asking questions that you already know the answers but Im asking so I'll know the answers too. I have made lots of calls and read thru many websites and have had trouble getting accurate answers. Since some of you have been here I came to you to lead me in the correct direction instead of wandering aimlessly thru all the avenues of information. I never claimed to be a business major and yes I'm having a rough start. Thanks for the continued support from those of you who are genuinely helping me. Same remains for those of you who leave less than helpful comments, may you never be in my position. I have learned so many things to better myself and I am proud of the progress I made. I didn't realize how much information I didn't have before I came to this website. I have also decided to keep my "tacky" pink in my logo. I have a brand new logo and the pink is representative of my personality and style. If some one chooses not to hire me to take pictures for them because my name reads in pink I'm fine with that. I like pink, so harass on.

I'm sure there are other posts I'm forgetting to reply to, sorry. I am also working on getting my website in shape and putting the professional feel to it. thanks again everyone!
I didn't read every response here, so forgive me if I am beating the dead horse here. Your pricing is actually PAYING your customers for you to photograph them. You already know you need to get everything legal and on the up & up side of things. Then you REALLY need to take a good long hard look at your cost of doing business (CODB.) Here is a good CODB calculator for photograpehrs
NPPA: Cost of Doing Business Calculator . You will need to have an entry in ever field-even if it is 0. If you have a 0 in there somewhere you need to think long and hard because you shouldn't. If you are using your home office that space costs you something. Yes, it's included in your household bills, but you NEED that space to do business. It's now a business expense. Same with the electric, gas, etc to run that portion of the house. If you are using a computer or camera or other things that you already owned, it's still wearing on them and you will have to eventually replace them. They are still an expense...
You've said you have raised your prices and Kudos to that. Your pricing is PROBABLY still working against you for your target market. Think about what we say here about goods for your camera... "You get what you pay for." That holds true in most things and MANY people will thumb their nose at cheap as being the AWAC or faceboook photographer.
And my last point on pricing-Work SMARTER not harder. Or most of us want to. I know I don't want to work 7 days a week, 10 hours a day for a measly paycheck. How many hours do you want to work in a week? You can make your money working 40+ hours or you can make your money in the # of hours you want to set for yourself, but you have to price accordingly. Your price point should be where you can make what you NEED to make in the hours you need to work. Shooting 30 sessions and busting your but 24/7 is kind of silly when you can shoot 10 sessions and work a normal pace. You don't have to take a million sessions. You don't want EVERY client, you want YOUR client. Price for YOUR client.
Next your marketing. It's actually working against you. Consider the average viewer that is seeing your marketing. Are they the person who is going to spend money on custom photography? And are the person who is going to spend a large amount of money on custom photography? Probably not. Most of your marketing is reaching the wal-mart budget people. You have to figure out who your target market is. In order to do this you need to figure out who you IDEAL client is. Not who your best client is, but the one that if you could find a million people exactly like THIS you would be rich. WHere do they shop? Where do they play? Where do they live? What brands do they use/wear? What is their income level? What do they drive? How large is the family? WHen you know who your IDEAL client is, then you need to figure out how to market to them. You have to hit them where THEY are going to see you. I HIGHLY recommend Mitche Graf's Power Marketing book. Excellent reading.
Branding is so important. I know you are clinging to your Logo and if you want to do it, that's fine for you. Is it the best move? probably not, but if you want to attract what it is going to attract then that is part of your target market and it's fine. However consider it long and hard as you are thinking in terms of branding. If Apple had been a typical Kindergarten apple with the worm in it would it have been taken as seriously as the apple logo is? Probably not. Apple has re-worked their branding over the years to attract a certain type of customer-their target market. Your branding may reflect your personality, however does it reflect the personality of the high income family you want to attract? It's your decision and you CAN do it with a kitchy logo, but it is a WHOLE LOT HARDER.
You have some things to learn yet and you know it. So work in what you already KNOW for now and add on more as you learn it. Don't try things out of your comfort zone until you learn what you are doing. It's a sure fire way to kill any business you may be building. There are many many resources for you to teach yourself from, but that's a whole different post!