Really??...you haggled down to £89??...was that an upgrade or as a new customer...i spoke to them this morning and asked if they would budge on the price but they werent having any of it...i might wait till i get the phone then ring them up and say i want to return the phone as its too expensive.
But £89 for the phone seems highly unlikely as they would be losing money on the phone rather than making money...at the moment buying the £10pm over 24mths with £164 price tag works out to £404 all in which is around the price of them being sold sim free ie unlocked. Whereas your paying £329 all in...not saying your lying but i find it very hard to believe that they would reduce the price by that much.
I'm dubious too, you're buying a phone on their cheapest contract so it's not likely they are going to make much money out of you. Simfree the phone is about £400 even allowing for the fact there is some profit in there it doesn't leave much just for the normal ongoing costs of operating a mobile network.
I'm not saying he's lying either, it just wouldn't appear to make much business sense, no matter how many other phones you've bought from them.