What does having an upgrade at retail price mean?

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Windows Central Question

I've lost my phone, since I'm still on my family's plan, I called home. I was told, after they checked with Verizon that, there are two available upgrades at retail price. What does that mean?
 
It is worth considering that there are sometimes discounts on your *service* for paying full retail, either in a payment plan or all at once. So you might end up paying $600 for the phone, but then your monthly service may go down in price. What plan are you currently on?
 

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