When to drop bid price in Adwords?

Hi guys, a question for you...

As the quality score for your campaign builds up a bit (ie, Google sees you're getting a good CTR etc), do you normally start lowering your keyword bids, or do you start paying less automagically?

If you manually lower your bids, at what point do you know to do that, and how low do you go? I see Google gives a minimum required bid amount for each keyword... is that relevant to this topic? I'm assuming that bid would merely get your ad shown, but you wouldn't be getting much of a decent position?

We usually wait about 1-2 days before dropping bid prices.  As long as you have good CTR you should be fine!

Thanks!

To probe a little deeper, you basically just try to maintain CTR while lowering bid prices? I assume you do it incrementally, and don't just drop right to the bottom?

Yep.  Drop them incrementally.   Don't want to set off any "flags"