My company is about 50/50 service and new work. Most of our new work is actually high end residential remodeling. Personally, I like the service work better, but both can be profitable. I like knowing that we can go to a job, do it, bill it and have a check all the same day. We have done some larger projects and houses, but the profit margin is lacking and takes longer to get.
royta, when I got started I kept my prices very reasonable and worked whenever the customer wanted the job done, even starting jobs at 8 or 9pm to accommodate them. It kept me busy and paid me enough to slowly grow. Once I built up a good customer base my price eased upward. You will find that if you give Mrs Smith a good deal and she likes you and your work, when she refers you to Mr Jones, Mr Jones won't get a quote from Meth Electric, just you. Basically a new customer can be a hard sell, but a referral is almost a guaranteed job.
