Am I Paying Enough Yet?

Hypothetical situation: you have just broken free of your previous 3-year contract and are just about ready to sign on the dotted line for another 3-year term and a phone upgrade. You call in and spend an hour on the phone chatting with a customer service representative, declining all offers to upgrade your services which would double your monthly payments. All the details and prices are finalized when the representative informs you that you will need to pay an additional $25 administrative fee to be able to buy a new phone with your new contract. You're shocked and a little outraged. You ask what exactly you're paying $25 for and you get the typically-scripted response:

There are significant costs in terms of processing, administration, inventory management fulfillment, stocking, shipping and handling every time a phone is ordered.

Unfortunately, this situation isn't hypothetical.