Profitable Business or good customer service, which is important ?

It's very unusual to have a business which is intended to be not profitable.  (The only one I can think of off the top of my head is "Springtime for Hitler")

Whether or not you want to offer good customer service is strictly a business decision.  In the long term it's usually most effective to provide good customer service, but it's not essential.  Look at Ryanair - the customer service is dreadful, it's the worst rated airline in Europe.  And also the one that carries the most passengers.