In this time of economic problems, people are more concerned about cutting costs. If you offer products with cheaper prices, the business will attract more customers. So every business shouldn't focus on making huge profit but the target should be how to attract more customers. This is because more customers will lead to higher profits. So business owners should seek quality products that have competitive prices.
Too many customers obviously won't increase your profit, and if you're selling things at a loss to them, I don't think that's a good way to attract more customers. Instead, treat your customers well and stock your store with a variety of goods so they can make the perfect choice when they visit. As you mentioned, treating your customers like kings is another great way to boost your revenue because they'll notice when things are going well in your store.
Having many customers and making a small profit from each sale might be better than having few customers and making a huge profit from them. An example is having 10 customers that you make $10 from each of them and having 100 customers that you make $2 from each of them. The former will bring $100 and the latter $200. Attracting more customers is an important factor in business growth and profitability.