All that product development didn't come cheap, and the resulting fabrics aren't cheap either. Patagonia customers opening their newest catalogs to look for some ski underwear are experiencing sticker shock, as the Capilene-line prices are 10 to 15 percent higher than they were the year before.

Eventually, though, the premium won't be so high. Patagonia has gone through this process before, with organic cotton: After the company switched to 100 percent organic cotton in 1996, its fiber costs were two to three times those of conventional materials. "We wanted consumers to understand the magnitude of the decision [to go totally organic]," Dumain says. "As a for-profit business, we had to pass our costs along."

Buying Green with Less GreenDanny Seo, environmental-lifestyle columnist and author of the Simply Green book series, recommends these shopping strategies for going green on a budget. 1. Watch your supermarket's sale circular. Stock up on organic products like dry goods and frozen fruits and vegetables when they're on sale. 2. Buy store brands. Many national grocery chains now have their own organic products, which can be significantly cheaper than the name brands.