Put the grass tees on a small berm to promote drainage, but avoid having the downhill range that makes it hard to track yardage.
Avoid putting range at the low point of the golf course or the area, or you will have drainage problems and lose golf balls in the mud.
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If the North and East edge of your range plot (above diagram) are the external bounds of the range, consider having a berm line on both the West and the South side. If you have double to grass tee area, you can rotate the tee line more frequently and maintain better grass through the hot months.
Include a few trees about 100 to 150 yards out. This way, golfers can practice fading and drawing the ball around trees. Mark how tall they are at the top on the range guide, so I can see how high I can hit the ball with different clubs. (Trains the eye on whether or not I can fly that tree out there with, say, a 5 iron.)
Also, have a few prominent trees along the range's back line so people can practice landing tee shots in the fairway. (I dropped 7 of 10 between the oak tree and the red maple).
Note: Three ranges in area have tried multiple ball varieties: two-stripe distance balls, or three-stripe midspin balls for a $1 premium a bucket. But, this rarely lasts for more than a season because of the hassle of manually sorting the balls, increased inventory, etc. IF someone could invent a range ball washer/dryer with an electronic eye to auto-sort the two- and three-stripe balls, this might be a good value-added innovation.