diff --git a/conf/example.conf.in b/conf/example.conf.in
index 3bc8c3cbf..cb4d3e5e1 100644
--- a/conf/example.conf.in
+++ b/conf/example.conf.in
@@ -25,7 +25,7 @@ config {
     abort_on_errors = 0
 
     # Directory where LVM looks for configuration profiles.
-    profile_dir = "@DEFAULT_SYS_DIR@/@DEFAULT_PROFILE_SUBDIR"
+    profile_dir = "@DEFAULT_SYS_DIR@/@DEFAULT_PROFILE_SUBDIR@"
 }
 
 # This section allows you to configure which block devices should
diff --git a/configure b/configure
index aae8165c3..fbe92a580 100755
--- a/configure
+++ b/configure
@@ -1639,7 +1639,7 @@ Optional Packages:
   --with-dmeventd-path=PATH
                           dmeventd path [[EPREFIX/sbin/dmeventd]]
   --with-default-system-dir=DIR
-                          default LVM system directory [[/etc/lvm]]
+                          default LVM system directory [[EPREFIX/etc/lvm]]
   --with-default-profile-subdir=SUBDIR
                           default configuration profile subdir [[profile]]
   --with-default-archive-subdir=SUBDIR
@@ -10549,7 +10549,7 @@ fi
 if test "${with_default_system_dir+set}" = set; then :
   withval=$with_default_system_dir; DEFAULT_SYS_DIR=$withval
 else
-  DEFAULT_SYS_DIR='${exec_prefix}/etc/lvm'
+  DEFAULT_SYS_DIR="$lvm_exec_prefix/etc/lvm"
 fi
 
 
diff --git a/configure.in b/configure.in
index 1d62fee71..fa31b1802 100644
--- a/configure.in
+++ b/configure.in
@@ -1417,7 +1417,7 @@ dnl -- various defaults
 AC_ARG_WITH(default-system-dir,
 	    AC_HELP_STRING([--with-default-system-dir=DIR],
 			   [default LVM system directory [[EPREFIX/etc/lvm]]]),
-	    DEFAULT_SYS_DIR=$withval, DEFAULT_SYS_DIR='${exec_prefix}/etc/lvm')
+	    DEFAULT_SYS_DIR=$withval, DEFAULT_SYS_DIR="$lvm_exec_prefix/etc/lvm")
 AC_DEFINE_UNQUOTED(DEFAULT_SYS_DIR, ["$DEFAULT_SYS_DIR"],
 		   [Path to LVM system directory.])