I play D&D with my four younger brothers and my Dad, and I like to be the DM. When I generate a town, one thing I like to think about is what goods of which it might have a surplus or shortage. Let's use the random example village of Stalton. I'm going to arbitrarily determine that it has a surplus of iron, but a shortage of wood and cloth.
In my games, I'll use discounts and increases in multiples of 5's, from +25% to -25%, and the percentage determines the severity of shortage to the abundance of surplus. So, as long as the PCs are in Stalton, they'll see that iron goods are 25% cheaper, but wood is 15% more expensive, and cloth is 10% more expensive.
But, what if they're buying an ax? It's made of both iron and wood. Combine the discount and increase. In this case, you'll get a total of 10% off (15 - 25 = -10). If your PCs want an item made of two things that have discounts (I really recommend one discount and two increases, but it's your game), just use the lesser of the two discounts. NPCs gotta make money too, you know!
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