The upgrade fee is broken out from the contract price of the phone. For example, I just upgraded from the Droid2 to the iPhone 4S on Monday. The contract price for the 32GB iPhone is $299. My receipt shows the upgrade fee of $30 and the phone cost is $269.99. Add the two and you get the listed contract price of $299.99.

So when you read the prices listed on their website, the $30 upgrade fee is included in that price. They break it out at the cash register.

 

Next time you want to upgrade your phone and extend your contract try going to an independently owned Verizon authorized dealer. You can find them in storefronts and kiosks at the mall. The sign will say "Verizon Authorized". They are usually a bit easier to work with and are much more flexible than the Verizon company stores. Mine upgraded our phones and waived the upgrade fee. This is the second generation of phones we've bought from him and that helps, but the independently owned Verizon authorized dealers are much better to work with.