Hi Steve,
I started out as an industrial designer too. In “The Before Time”, in “The Long, Long Ago”, in an age we called “The Late Twentieth Century” I worked at a consulatancy for about five years doing product design but then the direction of the company changed to doing more industrial illustration and animation using Alias Studio and Power Animator (remember those programs?) running on two SGI Indigo 2 Extremes. And I fell I love with 3D modeling.
Then something fantastic happened – Macs and PCs got more powerful and a lot more affordable. And the 3D software that ran on them did too. I decided to go back to design school and freelance. I bought a G3, EIAS and Rhino running under Virtual PC and was able to crank out more quality work with that, in a much shorter time, than using the SGIs and Alias in the office. My freelancing ramped up and I got to work on lots of cool projects. For six years this was my main bread and butter. Because I took on clients in different fields (design firms, ad agencies, manufacturers and multimedia groups) I branched out doing Flash and interactive QuickTime. As I did, I forgot how much I enjoyed 3D modeling. Now, I’m trying to focus just on that. As Brian mentioned earlier in this thread, I’ve hit a plateau. There’s only so far you can go on your own as a freelancer (at least for me).
Freelancing has its joys, no doubt. But it can also hold you back in some very important ways. Working on my own, I spent more time trying to get work, writing proposals and negotiating contracts than I did doing what I loved – 3D modeling. Life is short. If you can spend your time doing what you love around other talented people, helping each other reach that next level, well. . . .that’s what I’m searching for now.
That said, you can make some serious money as a freelancer. 3D for print is one of the most unrecognized yet potentially the most profitable avenue for any CG freelancer. Also, 3D animations for tradeshows are getting to be more and more common place. There’s lots of room for talent to thrive. For pricing you might want to check the Graphic Artists’ Guild Pricing and Ethical Guidelines book. It’s mainly geared toward graphic designers but does a pretty good job pricing artwork in a variety of industries. It also has ready-made contracts in the back. Whatever you decide to charge as a base, make sure to multipy your fee by about 1.5 to cover your equipment costs, software upgrades and travel expenses (all this can be written off your taxes too!). And in my experience, if you negotiate “net 30 plus 7” terms, ALWAYS charge interest on late payments. I had one clent who took nearly a year (yes, a year) to make the final payment on our contract. I could have made three times as much money on that one job if I had charged interest! Well, you live and learn, right? 
I hope this helps.