Rob Langton recently sat down to discuss business and life with Ian Malouf, the founder of waste management company, Dial A Dump, and yacht chartering company, Ahoy Club. Here are some of the big highlights and takeaways from the exclusive 50-minute interview.
After graduating high school at Sydney’s prestigious St Joseph’s College in 1983, a young Ian Malouf found himself enrolled in a law degree, which he studied…for six weeks.
“In hindsight, [it was] definitely the right course. Maybe not to practice, but to have that in your business life, it’s definitely a good course to have.”
After six weeks of classes, Malouf had come to a crossroads.
“I was able to save up a little bit of money... and then I bought a little truck. Law started to kick in at the same time. Working all day and studying all night was not going to work. So I had to choose one.”
That “little truck” Malouf refers to was his first investment; a truck that would enable him to kickstart his journey in waste management. He would go around and knock on prospective clients’ doors, offering to take their rubbish away. It quickly became a profitable venture.
“Back in those days, I might have made $100 by the end of the day, and it was a lot of money... for $10, you could go out and have plenty of beers and a pack of cigarettes... To go out and do something, spend $10 and end up with $90; I cannot tell you how much money that was back then.”
But with the success that this new entrepreneurial venture was giving him, Malouf would have to give up his law degree. “Much to my mum’s dismay or dislike, I chose the truck.”
It’s safe to say that Malouf doesn’t regret his decision.
Holding a freehold position was a crucial part of Dial A Dump's success.
“It’s funny that I’ve always paid too much for property, but I’ve never, ever overpaid.”
Malouf considers two of his biggest career achievements purchasing Dial A Dump's Alexandria landfill, and then in 2006, purchasing 120-hectares in Eastern Creek for a waste management facility. According to the business mogul, detractors condemned him on both occasions.
“In both circumstances, I was told I had paid too much.”
Malouf doesn’t care for criticisms of his property acquisition approach, as he believes his business ventures created surplus value in the land that he bought.
“[I’ve] been really lucky that I was able to work a business, grow a business, and it was able to make money. It fuelled the land, and the land, unbeknownst, [started] to rise in value significantly.”
“Because the business could fund me buying land, the land became arguably larger than the business in many respects.”
This drives his staunch belief that owning the property that his business operated from was of the utmost importance, and was a contributing factor in his rise to prominence.
“It was important to have a freehold position wherever I was working my business from. It was a great component of my achievements.”
Regulations were an advantage for Dial A Dump, not a hindrance.
“Back when I started, it was probably a lot easier. Then the constraints came in. Environmental levies came in... and that was just opportunity, and it made the business bigger.”
Many view regulatory oversight as an obstacle for a burgeoning business that’s trying to find its feet. But Malouf sees levies as not just beneficial for the environment, but beneficial for evolution in the waste management industry.
“You can resist all that stuff, or you can go with it. When the government puts its arms right into your business, it tends to make it bigger. You’ve just got to be willing to work out how this is going to change [your] business.”
He credits these levies as part of the reason why his company started placing more emphasis on recycling efforts, which in turn, has contributed to New South Wales having some of the best recycling processes in Australia.
“If you measure it out, without taking currency values into account, it’s probably the highest levy in the world. But what that does, is it promotes you not to landfill stuff. Simple as that.”
Dial A Dump moved towards recycling before many of their contemporaries, and as such, they were able to adapt to the changing circumstances and requirements, while their competitors lingered on traditional means of waste management.
“To not move with it, you’re left behind. You’re out of business now.”
His latest venture, Ahoy Club, is a family affair.
Malouf’s Ahoy Club is a platform that allows customers to browse and book professionally crewed luxury yachts, but he'll be the first to tell you that it's not just his brainchild. The idea for the business was conceived at a 2015 family dinner, before being actualised in 2018. In his own words, it’s not his business, but his eldest daughter Ellie’s.
“Ellie, [is] the CEO of Ahoy Club, and rightfully so. She’s a champ.”
The father-daughter team shares a passion for yachting, that was developed as the family spent hot summers out on the water together. But as Malouf revealed, the experiences he often faced whilst chartering boats left a lot to be desired.
“I chartered boats over time, and the experience was a bit clunky, to say the least. And then I owned a boat, and I found the experience was also quite clunky, as an owner trying to connect with charterers.”
Ahoy Club was born out of this frustration with an industry that was still primarily analogue. Whereas traditional brokerages would only offer and showcase the small portfolio of yachts that they directly managed, Ian and Ellie developed a platform that provided markedly more options for a fraction of the cost.
“What makes the difference... was the availability to show you 4,000 yachts. Each brokerage was showing 10, 20, whatever they may manage.”
Additionally, Malouf acknowledges the high commission fees that drive up costs under the conventional model of brokerage, adding that Ahoy Club’s commission is much lower than its competitors.
Ian Malouf (right) with Ready Media Group's Rob Langton
“The industry carries with it a commission structure in the order of 20%. For me to sign one contract with you... a $1 million yacht, I'd get $200,000 for signing that one contract for one week. If [Ahoy Club] signs that contract, we’ll receive $70,000, and the client will get to keep $130,000 in their pocket, which keeps them coming back.”
For Malouf, the industry sometimes loses sight of true value. With his background, he doesn’t have the same issue.
“I’m the guy that was happy with $100 when I started in my business, so $200,000, to me, is a lot of money.”
Being able to charge less than their industry counterparts has formed part of the appeal of Ahoy Club, and has been a driving force behind Ian and Ellie’s continued success.
The fundamentals are what keep Malouf competitive in the fast-paced world of business.
For Malouf, the key learnings for business aren’t exceedingly flashy tropes. They’re all pretty simple.
“Good service, good value. Be honest, [and] don’t rip your clients off.”
Maintaining good relationships remains a focal point in his approach to life.
“Relationships are everything... Your relationship means you’re really genuinely servicing your customer.”
But ultimately, a product is difficult to sell unless the individual selling it has a good knowledge of what benefits it provides to a consumer. Malouf says this is vital.
“The simplest one of all is, know your product well. You can’t sell something you don’t know well.”
“Hard work brings it all home... If you’re going to holiday, [then] holiday. But if you’re going to work, [you need to] work.”
Watch the full interview with Malouf, conducted by Ready Media Group Director, Rob Langton, here.
