Very true Keith. In my experience of ebay starting at .99p is the best because it incurs the lowest charges and people seem to get involved in a bidding frenzy more easily. It can be quite nerve wracking as most bidding takes place in the last few hours.
I've found that setting a reserve is very off putting especially if people don't know where it is. They seem to think it's not worth risking an opportunity and move on to another. There is another drawback to this, Ebay charge quite a lot for setting a reserve, so failing to sell is not a free lunch.
Then theres Ebays swinging fees which amount to around 10% and Paypals at 4% so selling for £700 will only return £602.
John has bought a 5D MkII with the kit lens 24 - 105mm which is discounted to around £550 (Jacobs) so even selling the lens here at £650 he'd be quids in, and someone would get a nice lens at a fair price.
Yes, it is expensive to advertise on ebay. That's the way it goes. There are other Internet alternatives I think. Some areas have local ebay sites. We have ours on the Isle of Wight, but not a successful way to sell generally. Another Route is to place an ad in the Amateur Photographer. That was the preferred method before ebay came along. At least you can get the cash in hand if arranging buyer collects. I always had success in selling gear before ebay came along. Another thing is to use the spare lens as a part exchange tool for something you might like to have of course.