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If I could purchase it at Costco with my upgrade discount, I may just do this, otherwise I'm still heading to my VZW store, if it is coming on the 17th...c'mon Verizon, say something!
Yes you can use your upgrade at costco. Best part is, if you end up returning it because you don't like it, there's no restocking fee. Did this with the bionic. Gonna be getting the gnex from there also
Costco only sells new lines or upgrades -- they do not sell full retail. You can not use any VZW discounts at Costco. However, at least in CA you pay tax only on the Costco price (in this supposed case $289 -- but at VZW and BB you pay on the full retail (approx $600) -- that is roughly another $30 in savings and takes some of the sting out of the $50-$100 discount from VZW.
You also have 90 days to return the phone. You can either get your money back, or (at least in my experience twice recently) you can get another phone that they are selling at the upgrade price and they credit the price you paid against that. If you return before the 14th day you can get your money back and VZW will mark your line so that you can get upgrade pricing again (but you must make the next purchase either at any retail location or over the phone -- you cannot use Amazon or Wirefly).
This was my recent experience with Costco. I got a Bionic for $279+tax on $279 (so it was $307 total out the door). After about 5 weeks my wife decided she wanted a smart phone -- she chose the Droid 3 (physical keyboard a deal breaker for her) at Costco. About a week later my Bionic data drop issues got out of hand. I took the Bionic back and got a Droid 3 (paid roughly $100 for the Droid 3 -- got a credit back on my AMEX for the full $307 for the Bionic). I put the newer Droid 3 on my wife's line and returned the Droid 3 she got at about day 10 -- for full credit and they called VZW to reset her upgrade. Now VZW tells me we can get any phone at upgrade price (from VZW, Costco or any other outlet) -- but we must do it in a store or over the phone so the seller can contact VZW and be told to give the upgrade price because we returned during the Worry Free Guarantee period. So -- I will be selecting one of the Rezonund/RAZR/Galaxy Nexus after the reviews and real world experiences are known.
BTW -- since all the buying and trading above left me without a phone -- and I couldn't stomach going back to the BB that I had before the Bionic -- I bought a Droid Incredible for $30 on Craigslist and used in for a week, then nabbed a Droid Incredible 2 on Craigslist for $100 -- so that is what I am rocking now. Miss the 4G of the Bionic a lot, but love taking pictures that are not HORRIBLE.