These are two different approaches;
If by "Increasing the bid" you are referring to the search network, then it is (to my opinion) the "last resort". First work on improving your keywords, match types and QS. Only when these are properly set / configured - higher the bid.
On the display network front: re-marketing is an excellent tool that I would strongly recommend.
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If you already have a negative ROI for your re-marketing you probably shouldn´t increase bids, ´cause that way you will just loose even more money.
If your ROI is positive on the other hand, and you are loosing impressions and clicks due to low budget, you certainly want to increase budget.
If your ROI is positive and you have a good margin, you MIGHT wanna increase your bid (and your budget of course, not just the former!). That way you could start spending more per click and conversion/sale, but you could possibly also sell more, which could mean a lower ROI but a higher total profit - and it´s profit that matters!
If your Daily limit is not reached then +Bid spend = more sales lower ROI
In your case, it might be better to increase daily spend (but drop CPC it to where you serve ads throughout the whole day to meet your daily allocated impression count, if possible)
I had better success with some CPM remarketing campaigns over CPC remarketing, so you might want to consider a CPM campaign.
Your CPM will improve ROI if CTR is high. If CTR is low, then CPC is the way to go.