As J Tanner said, ignore the suggested bid, well almost always. Figure out your breakeven point, come up with an ROI, assuming your conversion rate is okay, then place bid at that level. Or just do what I do and start with a baseline then slowly increase it if the ad performs to my max bid. (My max bid is like $2, but I never get close to that, I don't think any of my bids are over 1.00, most are in the .30-.60 range.)
The reason the suggested bids are so high is the same exact reason 6x9 is the most popular print size for POD. When a bunch of people who don't know what they are doing all jump into something, they just pick things wildly out of thin air. In this case, "Oh look the suggested bid is 1.46, I'll go 1.76 so I'm sure my add is seen". And the suggested bid creeps up because there's a group of people who will double the bid if they think it will work. Unless they are getting clicks and conversions, it doesn't matter how high the bids are though, because they aren't getting sales.