Hoss
I use Tower as only one example. There are many RC Airplane outlets that could do more towards promoting AMA. What do these outlets gain by working with AMA? Well, for starters AMA is a major promoter, and recruiter for the hobby. AMA is a huge advertisement in itself for the hobby, which IMO translates into sales for RC Airplane Distributors. I view AMA much like the Union I belong to. There are tons of things wrong with it, but where would my trade be without it? I would probally be living on a steady diet of government cheese without it. AMA with all its faults does more good for the hobby than it does bad. I would also wager that 100,000 AMA members spend more money towards the hobby each year than 100,000 non AMA members. There are always exceptions, but I tend to believe that a majority of your long term Airplane Modelers are in fact AMA members. I would also wager that if there was an exact way to tell, a majority of your non AMA Members are mostly "one hit wonders", and by a majority leave the hobby as quick as they came. Please nobody take offense here, because like I said, there are exceptions.
So with this said, I think AMA has a little muscle that could be flexed. They could flex there muscle by increasing ad rates in MA to those who do not offer exclusive benefits to AMA Members. The reason I think this is important is that would show non AMA members that Distributors have a strong connection with AMA, and that they value those who join by offering them a little discount.
I disagree with you Hoss that people do not buy at Tower based on coupons. From people I talk to, I think there are many who buy there based on the low prices, and a nice coupon to boot if there is a specific item they need or want. A $25 off coupon at Tower has lured me in to buy many times. I won't tell you what I spent at Tower last year, but even a 5% discount would have more than payed for my AMA Membership easy. Actually a 3% savings at Tower would have. This does not even take into account all the other vendors I bought from. I realize also that many may not spend as much as I, but lets just say you saved $5 for every hundred you spent just for being an AMA Member. That would translate into a pretty good deal every year IMO.
My whole reasoning here is to attract new members. I still believe you have to have something other than insurance to sell AMA to some people. I am a member because I like what AMA stands for, but this is not enough reason for some people. There has to be some felt benefit to bring more on board IMO. Right now the mag is looking good IMO, and this also helps to attract people. No outsider cares if we are getting a bad mag exclussive with our Membership, but if you start getting a good mag exclussive to AMA Members, then this will turn into another small reason why you should join AMA.
Basically AMA needs to do a better job using there strength in numbers to negotiate tangible benefits that can be used for a selling point.

A good question JR! I to would be courious to know that answer.

I don't know the answer.

Is it possible that MA is not underpriced, when compared to the negoiated discounted rates with, say, RCM? That MA is not competitive and Tower does a token amout of advertising to support the AMA? Is it possible that any further increase in rates might kill MA as far as the larger advertisers are concerned?

Related question: Why is it that so many smaller companies choose to advertise in MA and no where else (at least I don't see them)? Is it because of the larger circulation of MA, or, is it because the smaller companies can not negoitate the best rates with other magazines and MA is the best buy for them?

Could it be that a modest decrease in MA advertising rates would result in increased net income? Remember, it appears that the media sales company representing the AMA is on comission, so the comissions would drop as the rate drops.