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The corebook states that spells cast are sold for CL * SL * 10.
However, that can make a PC who is selling spells a lot of money over time, given significant demand.
I'd like to hear from any GMs who have allowed this. How did it go? Specifically, how did you determine what a PC could earn in a given day/week/month/year?
It's classic RPG econoomics; the vendor prices are positively outrageous and amount to price-gouging. You'd never get away with charging anywhere near that much money in a competitive market, at least not regularly. If the PC's are selling spellcasting services, I'd recommend ignoring these prices altogether.
There are downtime rules for starting a business in Ultimate Campaign, which might be helpful to you. Otherwise, try to keep the money rewards low. For instance, for a 5th level party I'd be very skeptical of any non-risky means of generating more than 10 gp of revenue per day.
There is very little spellcasting demand for non-adventurers. For the PCs, it couple possibly happen as a one-time thing and only when certain circumstances arise. Normal people can't afford it. Nobles might be able to, but they could also have their own household spellcasters to take care of that.
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I'd personally go with it. Tell your player he's certainly welcome to sell Spellcasting services to anyone that comes to him requesting it.
This allows 2 options, He can sell spell casting services to anyone in the party that wishes to pay for his service. Or he can wait until you decide to have someone come to him for the service.
Just because he has a service to offer, does not automatically mean he has someone wanting to buy any of his spells over the course of a month, let alone all his spells every day.
I know if I were looking for spell crafting services, I'd probably head to a magic shop, not some wandering gypsy/adventurer set in the alley next to the local tavern!
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My solution to this problem was to have operating costs: taxes, guild fees, rent for a regular place of business, advertising, slow days without a single sale. And all these operating costs reduced the downtime income to exactly what they would gain using the UC downtime rules..