Targetting vendor site with adwords

[wbsrcom]

Tweet

Hi, I have just started 2 websites to do with ski rentals in Whistler, you can see them in my sig. My question is this, the vendor itself doesn't use google adwords, and i guess they think they because the rank 1-3 for every conceivable keyword in organic that they don't need to.
I have read that google recommends ranking high in both organic and ppc and intend to point this out to them.
However my main reason for this thread is this, there is 1 affiliate who is using a generic ad and pointing straight to vendors website. I set up some campaigns and found if i pointed at vendor site, google wouldn't show those ads, as the other affiliate ads rank 'higher' i am guessing this means they have set a higher CPC. I spent the time to make ads that were more appropriate for different search terms too.
Anyway, i have since directed them to my websites (in sig) which is my main concern, and find i can get shown for a lot cheaper then trying to compete with other affiliate.
now the question....
is there someway i can set up another campaign to try and force my competitors costs higher? or should i just go to vendor (who i can meet face to face) and try to persuade them to use PPC, and then ban affiliates from targetting there website directly ( i know a few vendors that do this, and it makes sense)
sorry about the long post, but i have a lot to learn, and will probably ask a lot more quetions in the future
thanks to all who help

[Barry]

Have you tried bidding up to the max of £50 to rid your competitor?

Its worth a bid war if you think the returns will be good in the end.

Ta