Higher Budget = Higher Placement in Adwords?

So I haven't done much PPC and not exactly sure how it works. I talked to a G representative even though I hate spending money on adwords but it's for a client. So she was trying to tell me that my ad won't be placed high and might not even show up if I don't match the competitors "budget". Not what they actually spend but their "budget". My client wants to spend $300 a month so $10 a day, for the market were in she is saying the competitors are spending $25/day or $750 a month.

So I'm wondering if I should talk my client into spending more or if she is full of shit and just trying to get more money out of us. Not sure how it work.

It is obviously related to budget: Company sets max cpc for the keyword to $99 and ensures its always going to be #1 then company b had a max cpc of $75... you get the point. So for you to show up you need to be above the competitors bid to begin with. Obviously in the end you might pay less based on quality score etc..
You can check the suggested first page bid(more often totally off than accurate) to get some sort of idea etc..

But as usual you can try to bid for a lower position than first it might look quite different then.

The client is ALWAYS right.

You run her budget like SHE wants, then if she isn't happy THAT is when you recommend raising the budget and CPC respectively. Even if you raise your budget and even your daily spend, if your CPC bid is too low it really won't matter.

Run with higher budget to get better cpc and then lower it to suit your needs.

To the best of my knowledge the quality score is really what you need to look at.

The daily budget will affect your placement but u can always spend more per click to pass almost anyone else.

U may start with a 10$ a day budget and set ur Max cpc to 1$ and get 10 clicks. But after u raise ur q score each click will get cheaper and give u a higher ranking.

A q score of 3 may cost 1$ cpc but a q score of 8 or 9 could lower it to .10 or lower.