SammyK is absolutely right!
In general, if you bid on less popular keywords, you'll find that your conversion rates may increase significantly.
There's a great course on building a better PPC campaign from eMarketSchool, and they go into detail about how to find better keywords and write better ads. If you're not sure, you can always download their free eBook.
Your ad's placement depends on other things besides just bids. Quality is everything!