--- a/Makefile
+++ b/Makefile
@@ -29,8 +29,7 @@ libudev.so: ${OBJ}
 	${CC} ${XCFLAGS} -o $@ ${OBJ} ${XLDFLAGS}
 
 libudev.pc: libudev.pc.in
-	sed -e 's|@libdir@|${LIBDIR}|g' \
-		-e 's|@includedir@|${INCLUDEDIR}|g' \
+	sed -e 's|@prefix@|${PREFIX}|g' \
 		-e 's|@VERSION@|243|g' \
 		libudev.pc.in > libudev.pc
 
--- a/libudev.pc.in
+++ b/libudev.pc.in
@@ -1,5 +1,7 @@
-libdir=@libdir@
-includedir=@includedir@
+prefix=@prefix@
+exec_prefix=@prefix@
+libdir=${exec_prefix}/lib
+includedir=${prefix}/include
 
 Name: libudev
 Description: Daemonless replacement for libudev