I have a separate campaign for my company's domain name and common mis-spellings and other configurations of it. My Max Bid is $1.00, but my actual Avg. CPC is much lower, under $0.50. Every time I've checked the search results for these terms, my company's ad is in the #1 position. There are 3 or 4 competitors that routinely show ads on these terms as well. If I raise my Max Bid to, say $5.00, would that have any effect on what my competitors must bid? I have a feeling that since I'm in the number one spot and not paying close to my max at this time, raising my bids wouldn't change my competitors' prices, but wanted to get some confirmation on this from you experts. Thanks!
Normally number 1 spot isn't the best position anyway. Also its the last position, so putting your MAX bid to say $5 wont really make a difference. I say keep it for now, and hold on until you research position 4, then increase your max bid.
Since you're in number one spot raising your bid to $5 will not increase your competitors costs. However if you raise your bid to $5 and the guy below you decides to bid $4.97 then your next click will cost you $4.98.