Play with bid matching...you can usually rely on getting a 2 or 3 word phrase for significantly lower CPC by using phrase and or exact matching. Have you downloaded Adwords editor yet? Makes working within your account a lot easier compared to the web interface.
Also, do not set high max cpcs, as the new formula will jack your bids to that in many instances. Are you using DKI in the ad title and text on high converting phrases? This is a great way to get a lot more clicks - but do this only where your CPA is good.
How about campaign negative keywords ie 'free' 'cheap' etc? Just a few very basic tips...
Many people still think of web marketing as being either organic
sEO OR PPC, when you really need a comprehensive solution. I'm the web marketing manager for a biz here in RI (a small company that broke 8 figures for the 1st time this year...with 50% of our business coming from the web). We spent $25,000 on Google Adwords in November alone. We measure the performance of every kw phrase on an extremely granular level. It is the single most cost effective way for us to acquire new customers. Get 'em with Adwords the 1st time and rely on their shopping experience, our catalog, new customer welcome plan, email specials etc etc to get them to come back directly in the future...YMMV.
Remember, you cannot game the blue box positions. Not worth it, either. However, you can raise your ad's visibility for free by improving your ad copy, title, landing page, etc. There is evidence to suggest that user behavior may be factored into the quality score. So a high CTR with a high bounce rate is no good.
I'm rambling now...back to work...