Lots of people ask what its like to run a pay to play or revenue generating shop. I tell them it is a double-edged sword.
We do charge here, we charge per project. We will work with pretty much anyone on campus assuming they have the budget. We have to charge because we have so much central funding to handle the core university needs. To meet the demand of other departments we have to hire additional staff or use contracted freelancers.
Regarding, our pricing we are far cheaper that at large firms yet we cover all our additional staffing needs. I would suggest you take a good look, I see it as a double-edged sword. Pro: we can hire more staff Con: You have to continue to make money to pay for said staff and may be neglecting core univ projects.
In my mind the best would be not to charge maybe get 1-2 additional staff members and then have either a committee or your VP prioritize which projects come first and meet the needs that way. Another option if you charge would be to pull in sub contracted freelancers to do the work for you when needed. Then you can grow or contract as needed.
Overall, it’s all a juggling act, we have been very successful in the way we are doing it just be sure you plan it out for the long term not short term.