There is no set answer to this very generic question. Nobody can tell you to bid X amount because every situation is different. Basically, you want your ads to appear at least on the first page, preferably near the top. This is where the keyword tool can be of use to give you an idea of what is the going rate for your keywords. You must keep in mind however that the tool offers only an estimate of how much you would pay (not have to bid) to be in the top three positions for an average QS. If your QS is higher, you'll pay less. Rule of thumb I use is to bid around the estimate, never higher, if my objective is to be in the top positions, which is almost always is. As my QS is usually higher than average, I will often pay only half that estimate. It also allows me to gather data on position and costs. I have a real baseline, not an estimate and I improve from that point. Of course, there are other variables. If your page doesn't convert good enough, your ROI suffers. You must then either reduce your bid, with corresponding reduction in position or, the better option, improve the page for better conversions. The idea is to test. I test all sorts of things. For example, for a client of mine I discovered that many categories of products he sells, the CTR is better in positions on the right side of the screen instead of above the SERPs. The cost is almost half too. This is unusual but it works for what he sells. However, this may not be the case next year and I may have to increase the bid.
If you bid too low, your ads won't appear at all or only appears for a few hours and you won't get lots of clicks or just clicks from very low paying locations.
With high quality score, low bid can win high bid. You can optimize your campaign. Try here : http://support.google.com/adwords/bin/topic.py?hl=en&topic=21804
Put together a mix of broad keywords that match the website content Then put together variations of those into phrase keywords and match keywords After a few days Suspend any variations with low Quality Score, this will then force the Ads from the better performing keywords options you have selected As an example website maintenance "website maintenance" [website maintenance]
you can know more information about adwords first , then see carefully about other company's adword price , then pick a good price for you adwords, good luck to you !
cpc bidding purely depends on niche your advertising it can vary from 0.01$ to 10$+ so niche factor is very important here unless its not disclosed predictions can't be made