I would say take a look at the venue...

Is it still packed? Have the management raised prices on their customers (to cover the increases in costs for THEM) and the venue is STILL doing a good business? If so, then I'd say you are in a good position to negotiate.

But don't forget, those pressures on you are also the same pressures on your employer, AND his customers. If he is hurting too, higher food wholesale prices, trucking costs, etc., and his customers are hurting to find discretionary income to go out to a restaurant (they've got to drive there, too!) only to find higher menu prices and the like, it may not be the best time to try and squeeze him tighter!

A lot would depend on how secure do you feel in the job? If you raise prices, are you SURE they won't just try and find someone more local, or do without live entertainment at all...?

It's your call. Maybe there's no harm in asking (not demanding!), but if they refuse, right now, with the economy tanking, I wouldn't push the point....
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An arranger is just a tool. What matters is what you build with it..!