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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.